Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Q. There is frequently a conflict between short-term and long-term interests in trade. Discuss.
Answer: In trade models that the short term is usually defined as that (conceptual) period of time in which both the amount and the technology of factors of production are given and cannot be changed. When we state that free trade is able to be shown to be an optimal policy under certain circumstances, we signify that in the short run, this policy is able to bring a country to an optimum level of consumption.
Though, there is no irregularity in the proposition that the optimum short run solution may not be the solution, which maximizes the probability of economic expansion or growth (the long run). For instance, a policy which maximizes expenditure may not take into account inter-temporal preferences, and therefore may "short-change" future generations or those who care for future generations.
Q. Explain how the timing of a balance of payment crisis is determined. Be careful to state all assumptions. Answer: The assumptions of the model are: Prices are el
Q. If the central bank does not purchase foreign assets when output increases but instead holds the money stock constant, can it still keep the exchange rate fixed at E 0 ? An
Q. Evaluate the Argentinean Convertibility Law of April, 1991. Answer: Excellent idea in the short run disastrous idea in the long run. The law was discarded only in Ja
ABOUT THIS THEORY
Q. Explain why East Asian countries have done so well relative to South American countries. Answer: Generally the reasons are less moral hazard less government debt to forei
alternative explanations to the theory of international trade.
what does the law of reciprocal states about and how does it differ from the theories of smith and ricardo
Q. Explain why Relative PPP is useful when comparing countries that base their price levels on different product baskets. Answer: For instance If the U.S price level increase
Using examples, from the government, illustrate the significant opportunity cost.
tion..What is the range of gross barter terms of trade ?
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd