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Q. Explain why one can write the demand for money as follows: Md = P L (R, Y)
Answer: The collective money demand is proportional to the price level. Imagine that every prices in an economy doubled except the interest rate and everyone's real incomes remained unchanged. After that the money value of each individual's average daily transactions would then simply double the same as would the amount of money each wishes to hold.
what is opportunity cost thory explain it with example
Q. It is claimed that the persistence of protectionism is often the result of the fact that those who lose from trade are usually a much more informed, cohesive and motivated a gr
The Republic of Ireland has had colossal economic problems for many years. On the other hand, in the last two decade, the nation has experienced a thriving economy and has becom
How can I graph partial equilibrium analysis for demand and supply of two countries who have a transport cost of $5?
explained with example
Is a depreciation of the dollar/euro exchange rate correlated with a decrease in the dollar return on U.S. deposits? Answer: No, suppose that the Interest Parity is maintained
what are the criticisms of OPPORTUNITY COST THEORY of international trade propounded by PROF.HABERLER and OHLIN
Q. Explain why under fixed exchange rate, monetary policy is ineffective whereas under floating exchange rate it is effective in rising output. Answer: In floating by purchasi
part of the return on the investment comes from the asset itself and part from the currency of the foreign currency. agree or disagree?
Q. At the conclusion of World War I, Germany, as a punishment, was obliged to take a large transfer to France in the form of reparations. Is it possible that the actual reparation
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