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Q. Explain the phenomenon of capital flight.
Answer:
The reserve defeat accompanying a devaluation scare is habitually labeled capital flight for the reason that the associated debt in the balance of payments accounts is a private capital outflow. Capital flight may perhaps force the central bank to devalue sooner and by a larger amount than planned for the reason that the central bank's reserves are low to begin with.
Explain the law of demand. Briefly discussed the exception to the law of demand
Q. A naïve implication of the DD - AA framework is that either fiscal or monetary policy can lead to full employment. Discuss why this view is naïve. Answer: 1. Inflation m
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#question.explain me Hecksher OHLIN theory of international trade in simple english
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Q. Explain why even owners of capital that cannot be moved can avoid more of the economic stability loss due to fixed exchange rates when Norway's economy is open to capital flows
(a) Consider there are two countries (country 1 and country 2) with two goods (X and Y). Further, under the assumptions of the Ricardian model, country 1 specialise in goods X. De
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