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Q. Analyze the effects of devaluation on an economy.
Answer: Devaluation basis a rise in output a rise in official reserves and an expansion of the money supply. A private capital inflow goes with the central bank's reserve gain an official outflow in the balance of payments accounts.
Explain why the exchange rate model based on PPP is a long-run theory. Answer: PPP theory is a financial approach to the exchange rate. It is a long-run theory for the reason
Are tariffs harmful are necessary to maintain fair trade?
Regulation of International Finance
Q. Describe the crisis in Russia starting from 1989. Explain why? Answer: Must emphasize lack of tax collection, legal system, corruption, organized crime, inflation, seigni
Q. "Even under flexible exchange rate regime, governments should not be indifferent to the behavior of inevitably and exchange rates surrendered some of their policy autonomy in o
Offer curves with example and explabation
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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
Concept of human capital
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