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Q. Discuss the main factors affecting the position of the AA schedule.
Answer: Revolutionize in the domestic money supply changes in the domestic price level changes in the expected future exchange rate changes in the foreign interest rate and shifts in the aggregate real money demand schedule.
Explain the complexities in the annalysis of balance of payment equilibrium
Q. What is the national income identity for a closed economy? Answer: Y = C + I + G.
Q. Explain why it may make sense for the United States, Japan, and Europe to allow their mutual exchange rate to float? Answer: Even though these regions trade amid each other
Question 1: The main challenge facing governments in the 21st century revolves around containing and/or downsizing of public spending. Explain why reduced government interventi
what are the different types of tariffs?
Q. Presumably, since the United States is a large country in many of its international markets, a positive optimum tariff exists for this country. It follows thus that when any l
Q. International trade leads to complete equalization of factor prices. Discuss. Answer : This statement is usually "true...but". Under a limited and strict set of assumpti
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Q. Albania refused to engage in international trade for ideological reasons. To maximize its economic welfare it could choose to produce at which point in the diagram above? Sup
Q. Write about the assumptions of the theory of consumer behavior based on the cardinal utility approach. 1. Rationality- It is assumed that the consumer is a rational being in
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