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Q. Analyze the effects of devaluation on an economy.
Answer: Devaluation basis a rise in output a rise in official reserves and an expansion of the money supply. A private capital inflow goes with the central bank's reserve gain an official outflow in the balance of payments accounts.
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Vernon's product cycle theory
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Q. What are the predictions for the long run of the Monetary Approach? Answer: Money supplies- Known the equations E $/E = P US /P E P US = M S US /L(R $
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