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Q. Why would you suggest to a government to use a floating exchange-rate regime?
Answer: Floating Exchange Rate is an exchange rate in which central banks don't intervene in foreign exchange market to fix rates. Reasons for Floating Exchange Rates are given below:
1 Monetary policy autonomy. 2 Symmetry. 3 Exchange rates as automatic stabilizers.
Q. In autarky, Country P was producing at point 5. With trade, could its production point be found above or below point 5? Explain why. What must happen in the K/L intensity ratio
What is the learning of International Economics to the social networking sites
is the stolper samulson theorem is relevant in these days
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. How did the international monetary system influence macroeconomic policy-making and performance during the post-World War II years during which exchange rates were fixed under t
Q. Explain the advantage a and disadvantage of globalization? Advantages - 1. Economic growth 2. Lower cost 3. Improved availability of goods and services 4. Glob
Q. Explain how the timing of a balance of payment crisis is determined. Be careful to state all assumptions. Answer: The assumptions of the model are: Prices are el
Q. Using the GG - LL framework, analyze the effect of an increase in the size and frequency of sudden shifts in the demand for a country's exports. Answer: Such a alter pus
trade experience of developing countries
Q. Present and explain the Fundamental Equation of the Monetary Approach. Answer: Suppose E$/E = PUS/PE and that domestic price levels depend on domestic money demand
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