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Question 1:
(a) Using examples, explain how the theory of Purchasing Power Parity conforms to the Law of One Price.(b) According to you, how best does the Theory of Purchasing Power Parity explain exchange rates?(c) What are the factors influencing exchange rates in the long run?
Question 2:
The main difference between Federal Reserve System and other government agencies in the United States is its independence.
Describe why the Central Bank is expected to be more independent.
a) Examine at least three (3) possible areas for the industry that could lead to transaction costs, and describe each in detail. b) Speculate about the behaviour that could
Identify path of growth and development to economic maturity.
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1- a- What are the five components of a time series? b- Briefly explain how you would estimate each component. c- What does deterministc trend mean? How do you detren
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Features of monopolistic competition: Large number of firms in the industry. There are many small firms each supplying only a small share of the total market output. Hence, no
Depreciation T ax Shield The decrease in corporate income taxes suitable to the deductibility of depreciation from the firm's taxable earnings. Although depreciat
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