#Tariff quota, International Economics

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Q. Using an equation, explain why governments prefer to avoid excessive current account surpluses. Answer: This pursue from the national income identity S = CA + I which says

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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?

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Q. What has been learned since 1973 with regard to the experience with floating exchange rate regime? Answer: 1. Monetary policy autonomy:   Yes though floating rate didn

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