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Q. Explain the difference between the following two expressions:
Y = C(Yd) + I + G + CA(EP*/P, Yd) and
Y = C + I +G + CA
Answer: The first expression corresponds to a behavioral equation and thus may express equilibrium conditions for the output market or the aggregate desired demand for output. The second equation is merely an identity that is always true.
Q. Discusses the effects of a rise in the interest rate paid by euro deposits on the exchanger rate. Answer: For a known U.S. interest rate and a given expectation wi
Q. What is the national income identity for an open economy? Answer: Y = C + I + G + EX - IM.
different between her barter terms of trade and net barter terms of trade
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Question : (a) What are the rationales for interest and currency swaps? (b) Suppose a Swiss firm, SandyCom Ltd, wants to invest in the U.S. The Swiss firm needs US dollars
International relations (IR) is the study of relationships among countries, including the roles of states, inter-governmental organizations (IGOs), international nongovernmental or
Q. "The costs and benefits for a country from joining a fixed-exchange rate area such as the EMS depend on how well-integrated its economy is with those of its potential partners.
Q. It is impossible for economic growth in a small country to lower that country's economic welfare, regardless of the bias of the growth. Explain. Answer: This is a true st
Q. Other things being equal, a rise in a country's terms of trade enhances its welfare. What could happen if we relax the ceteris paribus assumption, and allow for the law of dema
I want to make a report on Econmomic indicators in financial market
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