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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. Suppose E is fixed at E 0 and that the asset markets are in equilibrium. Suddenly output rises. What monetary measures keep the current exchange rate constant given unchanged e
Opportunity cost theory
The external economic environment could have implications for the project in various areas. There is no tax in Saudi Arabia; this is a significant political effect on the projec
review the general equilibrium conditions under autarky and given free trade using the opportunity cost theory of trade
Q. Write an essay on the importance of a sound banking system in developing countries. Answer: Students must describe the phenomena of moral hazard as a part of their answer,
explain the basis for international trade
Q. How did the European single currency evolve? Answer: The answer is related to the crumple of Bretton Woods and the European Currency reform of 1969-1978. The Werner
explain the newo clacical theory of international trede
explain the law of reciprocal demand trade theory of marshall
Q. Explain what a "vehicle currency" is. Why is the U.S. dollar considered a vehicle currency? Answer: A vehicle currency is one specifically widely used to denominate inter
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