ppp, International Economics

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Posted Date: 11/28/2012 11:49:23 AM | Location : USA







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Does the existence of non-tradable goods allow for deviations from Purchasing Power Parity? Answer:  Yes the continuation of non-tradable goods permits deviations from Purchas

Explain why Relative PPP is useful when comparing countries that base their price levels on different product baskets. Answer:  For instance If the U.S price level increase by

Is a depreciation of the dollar/euro exchange rate correlated with a decrease in the dollar return on U.S. deposits? Answer:  No, suppose that the Interest Parity is maintained

Q. International trade leads to complete equalization of factor prices. Discuss. Answer : This statement is usually "true...but". Under a limited and strict set of assumpti


Q. Describe the crisis in Russia starting from 1989. Explain why? Answer: Must emphasize lack of tax collection, legal system, corruption, organized crime, inflation, seigni

Q. Discuss the problems that the EMU will face in the coming years. Answer: Europe isn't an optimum currency area so asymmetric economic developments within different cou

Q. The United States seems at times to have a totally schizophrenic attitude toward protectionism. The United States was the country that proposed the establishment of the World

tion..What is the range of gross barter terms of trade ?

If one were to use the simple monetary model to predict the $/Euro exchange rate (L is constant), what would the expected exchange rate be?