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Q. Discuss the effects of government deficits on the current account. Answer: A difficult and hard issue that during the Reagan administration the creation of twin deficits whe
What is the role of foreign trade in an economic development of a country
Q. Discuss the differences between Absolute PPP and Relative PPP. Answer: Absolute Purchasing Power Parity (PPP) states that the exchange rate between two currencies e
Q. Illustrate why when Norway unilaterally fixes its exchange rate against the euro but leaves the krone free to float against the non-euro currencies, it is unable to keep at leas
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using diagrams, corden''s theory of customs union under conditions of oligopoly and within the existence of external economics of scale.
Theory of reciprocal demand
Explain the Financial Revolution and Monetary Affairs
Q. Explain how the money markets of two countries are linked through the foreign exchange market. Answer: The financial policy actions by the Fed affect the U.S. interest rate
Summarized the basic tenets of the arguments in this case
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