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Q. "The balance of payments accounts seldom balance in practice." Discuss.
Answer: True the major reasons are due to the fact that data received or collected from different sources may possibly differ in accuracy, coverage, and timing. In addition data on services aren't as dependable as data from the financial account. Furthermore accurate measurements of international interest and dividend receipts are particularly difficult.
Q. Explain why even owners of capital that cannot be moved can avoid more of the economic stability loss due to fixed exchange rates when Norway's economy is open to capital flows
Q. Consider the economy is initially consuming along the intertemporal budget constraint at point A, where no saving occurs. How does a fall in the real interest rate, r, and affe
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een subject to a discrimination complaint as a result of their recent recruitment campaign- They told the recruitment agency that they were looking for ‘young women with flair'' to
what are the basis of international business.
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Q. Present the case for floating exchange rates. Answer: 1. Monetary policy autonomy Governments would able to use financial policy to reach internal and extern
Q. Discuss the relationship between PPP and the Law of One Price. Answer: The law of one price is applies to individual commodities while Purchasing Power Parity appli
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