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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.
I need to use the gravity model to analyse the effects of the euro on tradeflows. is this something u can do?
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Q. What is the national income identity for an open economy? Answer: Y = C + I + G + EX - IM.
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