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Q. What do you think about dollarization?
Answer: The respond is almost certainly a bad idea unless in the very short run. It must talk about the loss of seigniorage and the gain in credibility against devaluation which should lead to lower domestic interest rates. Must mention the importance of political will to repair the fundamental economic weaknesses of the country
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
Q. How mobile is Europe's labor force? Answer: Differences in culture and language discourage labour movements between European countries. Differences in regional unempl
Explain why Relative PPP is useful when comparing countries that base their price levels on different product baskets. Answer: For instance If the U.S price level increase by
Q. Explain why the EMS countries decided to fix their exchange rates against the German DM? Answer: In this manner the other EMS countries in effect imported the credi
Q. Explain what a "vehicle currency" is. Why is the U.S. dollar considered a vehicle currency? Answer: A vehicle currency is one specifically widely used to denominate inter
Q. It has been argued that economic dualism that typifies relatively less developed or poor countries, is a barrier to participation in the global village, and lessens the chances
#question.what is the baises for international trade.
#question.bhugtan santulan keya hai
trade experience of developing countries
Difference between net barter terms of trade and gross barter terms of trade
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