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Q. Calculate the effects of the fall in the relative price of good 2 on the income of the specific factors capital and land.
Answer: For the reason that good 2 uses land, a fall in its comparative price will result in a fall in rental rates on land, and an enhance in the return to capital.
1. Write about masculinity vs. feminity of culture. 2. Write a note on ‘Organic effect' that affect the decision making process. 3. What is ‘Ad Valoram' rate of duty? 4. What is ‘D
(a) Consider there are two countries (country 1 and country 2) with two goods (X and Y). Further, under the assumptions of the Ricardian model, country 1 specialise in goods X. De
theory of opportunity cost?
Q. Using a figure describing both the U.S. money market and the foreign exchange market, analyze the effects of a temporary increase in the European money supply on the dollar/euro
ABOUT THIS THEORY
why do nations impose trade barriers
Q. "Trade liberalization could precede capital account liberalization." Discuss. Answer: It is probably true. The issue is associated to the theory of second best and
Q. Is Europe an optimum currency area? Answer: Yes the area's economy is strongly integrated with its own: most EU members export as of 10 to 20 percent of their output
Q. What do you expect would be the effects of 9/11 on the size of the Eurocurrency markets? Answer: Will increase because of fear that foreign deposits in the United States wi
Q. Based on the case study, answer the following question: Can currency boards make fixed exchange rates credible? Answer: No for the reason that is prohibited by law from a
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