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Q. Using the GG - LL framework, analyze the effect of Libya subsidizing the Pakistani Nuclear programs.
Answer: This will move the GG curve upward and to the left causing the two countries to trade more therefore reducing the minimum value for the two countries to cooperate under a fixed exchange rate regime.
Q. Suppose E is fixed at E 0 and that the asset markets are in equilibrium. Suddenly output rises. What monetary measures keep the current exchange rate constant given unchanged e
Q. In the year 2000, Americans flocked to Paris. What economic forces made French goods seem so cheap to residents of the United States? Answer: One main factor was a sharp f
breadtalk
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Q. What is the theory of Second Best? Answer: The principal of the second best notify us that when an economy suffers from multiple distortions the removal of only a few
What are disadvantages the classical theory of international trade
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