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Q. What are the factors that determine the amount of money an individual desires to hold?
Answer: Three major factors that are first one the expected return the asset offers compared with the returns offered by other assets second one the riskiness of the asset's expected return and third one is the asset's liquidity.
Q. Explain how an increase in government spending would affect the DD-AA schedule in the short run. Answer: A raise in government spending will raise aggregate demand, which wi
heberler''s theory of opportunity cost notes
HOW TERMS OF TRADE IS DETERMINED
Q. "Even under flexible exchange rate regime, governments should not be indifferent to the behavior of inevitably and exchange rates surrendered some of their policy autonomy in o
describe the U.S role in the world economy
Open Cities & Open Coastal Areas: like the Sezs, aimed at attracting foreign investments and technology. They are : Dalian (Liaoning province); Qinhuangdao (Hebei), Tianjin, Yant
Q. Suppose Airbus is set to give the aircraft before Boeing. Which company will enter the market? Answer: Boeing will not and Airbus will produce.
The international financial system
what are the limitations of net barter terms of trade
Q. How can long-run values in the real exchange rate change? Answer: A elevate in world relative demand for U.S output origins a long-run real appreciation of the dollar
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