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Q. Why did the EU countries move away from the EMS toward the goal of a single shared currency?
Answer:
1. To produce a superior degree of European market integration by removing the threat of EMS currency realignments.
2. To decrease German dominance of the EMS monetary policy.
3. Given the shift to complete freedom of capital movements within the EU fixed however adjustable currency parities may possibly lead to ferociously speculative attacks as in 1992 - 1993.
4. To guarantee the political constancy of Europe.
Q. Explain how Brazil was able to reduce the rate of inflation from 2,669 percent in 1994 to less than 10 percent in 1997? Answer: By initiating a new currency and init
Impact of the Project on the External Economic Environment International Medical Center will significantly affect the external economic environment in different aspects: • Th
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Q. Analyze the effects of devaluation on an economy. Answer: Devaluation basis a rise in output a rise in official reserves and an expansion of the money supply. A private cap
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What will be the effects of an increase in real national income on the interest rate? Answer: An enhance in real national income will increase the interest rate. If investment
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Q. Suppose the relative price of good 1 falls relative to the price of. What happens to the wage rate? Answer: The labour component of the price of 1 is bigger than that of p
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