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Problem 1
(a) Explain the evolution of exchange rate system in Mauritius.
(b) According to you, what factors determine exchange rates in the long run?
Problem 2
"Inflation is always and everywhere a monetary phenomenon." Discuss.
Problem 3
Clearly evaluate monetary policies that are available for banking and/or economic regulation.
Problem 4
Critically discuss the potentials or threats of a Monetary Union in Africa.
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Why does a price index based on constant weights tend to overstate inflation in periods after the base year when the price of one good is rising quickly compared to other goods?
Janet decides to play a game with her children, Jay and Jill (who are fraternal twins) and Mo. Each child is in their own room and cannot communicate with each other. Suppose Jill
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