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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, the debt crisis of the 1980s.
Q. Explain how a rise in real income affects aggregate demand. Answer: An increase in domestic real income Y leads to a rise in disposable income Yd. This increases
explain various gains from international trade
If one were to use the simple monetary model to predict the $/Euro exchange rate (L is constant), what would the expected exchange rate be?
Q. Explain why price levels are lower in poorer countries. Answer: One theory explicate the difference in prices on different endowments of capital and employment Bhagw
heberler''s theory of opportunity cost notes
Q. Based on the case study, "A Tale of Two Dollars," Illustrate why errors in the currency market will be more costly to the Toronto Blue Jays baseball team than errors in the fie
The East Asian financial crisis
New threats to an open trading system
#question.what is the baises for international trade.
Q. What are the main lessons economists learned from the developing country crisis? Answer: 1. select the right exchange rate regime. 2. The central significance of
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