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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.
Q. Explain why under the gold standard a perpetual surplus or a perpetual deficit is impossible. Answer: Since specie inflows drive up domestic prices and restore symmetry in
Q. What will be the effects of an increase in the money supply on the interest rate? Answer: An enhance in the money supply will origins the interest rate to decrease. This m
using diagrams, corden''s theory of customs union under conditions of oligopoly and within the existence of external economics of scale.
To answer the following question, please refer to the figure below. Concentrating only at the lower right quadrant, discuss the effects of a change in U.S. expected inflation.
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Role of foreign trade to the economic development?
Q. What types of international transactions are recorded in the balance of payment accounts? Answer: Three kinds' transactions that involve exports and imports of goods and s
Q. Imagine that the economy is at a point on the DD-AA schedule that is above both AA and DD and where both the output and asset markets are out of equilibrium. Explain what will h
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how does the buying and selling of stock fit the model for perfect competition
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