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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 the proper sequence of reform measures.
Q. Suppose the relative price of good 1 falls relative to the price of. What happens to the wage rate? Answer: The labour component of the price of 1 is bigger than that of p
Q. Explain why the exchange rate model based on PPP is a long-run theory. Answer: PPP theory is a financial approach to the exchange rate. It is a long-run theory for
Identify and explain the three basic economic question that the group of survivors will have to answer everyday
what is the diffrent between inter-industry trade and intra industry
different between her barter terms of trade and net barter terms of trade
what does the law of reciprocal states about and how does it differ from the theories of smith and ricardo
explain the source of foreign capital
what is the free trade
Q. Present the case for floating exchange rates. Answer: 1. Monetary policy autonomy Governments would able to use financial policy to reach internal and extern
defination, types
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