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Q. What are the main lessons economists learned from the developing country crisis?
Answer:
1. select the right exchange rate regime.
2. The central significance of sound banking system.
3. The appropriate sequence of reform measures.
4. The significance of contagion.
Q. Discuss the relationship between PPP and the Law of One Price. Answer: The law of one price is applies to individual commodities while Purchasing Power Parity appli
critically examine the effects of tariffs on the level of employment and income distribution.
Q. Explain Tobin's idea of "Don't put all your eggs in one basket." Answer: The idea of diversification advanced with Tobin in his Attitude Towards Risk as well as Por
part of the return on the investment comes from the asset itself and part from the currency of the foreign currency. agree or disagree?
Explain the law of demand. Briefly discussed the exception to the law of demand
how is exchange rate determined.
is general equilibrum in trade
Explain about International economic integration. EU
defination, types
What constitutes the basis for trade? What are the gains from trade in terms of production and consumption? Use theories and examples from a country of your choice.
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