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Explain how a country can peg (fix) its currency to another currency.
Explanation of a pegged/fixed currency should centre on how the central bank uses the currency market mechanism - buying and selling its own currency - to set the exchange rate in the LR. Using an S/D diagram, show how the corridor of the exchange rate can be set and then as the central bank can intervene to prevent the exchange rate from exceeding the floor or ceiling.
Question : (a) Using a simple example, diffrence between inter - industry trade and intra - industry trade? (b) Illustrate the reasons for the existence of external economie
describe returns to scale and give examples of each.
GIVE EXAMPLES OF EACH OLIGOPOLY MODELS FROM REAL LIFE
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Equilibrium Exchange Rate: The theory of exchange rate determination explains how demand and supply of foreignexchange interact and jointly determine the equilibrium exchange
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