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Explain the effects of a permanent increase in the U.S. money supply in the short run and in the long run. Assume that the U.S. real national income is constant. A raise in th
part of the return on the investment comes from the asset itself and part from the currency of the foreign currency. agree or disagree?
Q. Explain how an increase in the real exchange rate affects exports and imports. Answer: While the real exchange rate rises domestic products are cheaper relative to
An International Regime for FDI and MNCs
Q. How did countries use their policy tools to regain internal and external balance after the first oil shock of 1973? Answer: Seeing that the recession deepened over 1974 an
Discuss the differences between Absolute PPP and Relative PPP . Answer: Absolute Purchasing Power Parity (PPP) states that the exchange rate between two currencies equals the
what is the nature of the proximity-concentration that firms have to deal with then making decision regarding foreign direct investment?
Q. Discusses the effects of a rise in the interest rate paid by euro deposits on the exchanger rate. Answer: For a known U.S. interest rate and a given expectation wi
what you do understand by the term effective rate of protection
Are tariffs harmful are necessary to maintain fair trade?
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