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Q. "The balance of payments accounts seldom balance in practice." Discuss.
Answer: True the major reasons are due to the fact that data received or collected from different sources may possibly differ in accuracy, coverage, and timing. In addition data on services aren't as dependable as data from the financial account. Furthermore accurate measurements of international interest and dividend receipts are particularly difficult.
Q. Describe the chain of events leading to exchange rate determination for the following cases: 1. An increase in the U.S money supply 2. An increase in the growth rate of the
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Q. Explain the effects of a permanent increase in the U.S. money supply in the short run and in the long run. Assume that the U.S. real national income is constant. A raise in
Q. Explain the purpose of the following figure. Show the effects of German unification on Germany's interest rate. Answer: The major purpose is to show that different i
Explain Theoretical and methodological aspects of international economic relations
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