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What are the predictions for the long run of the Monetary Approach? Answer: Money supplies- Known the equations
derive the eqilibrium equation for the trade balance
Q. What are the main lessons economists learned from the developing country crisis? Answer: 1. select the right exchange rate regime. 2. The central significance of
using diagrams, corden''s theory of customs union under conditions of oligopoly and within the existence of external economics of scale.
Q. Use the diagram below taken from Figure 4-4 to identify the pre-trade situation for Australia and Sri-Lanka. Where on the K/L axis will you search each of the two countries? W
Q. Explain why under the gold standard a perpetual surplus or a perpetual deficit is impossible. Answer: Since specie inflows drive up domestic prices and restore symmetry in
Illustration of reciprocal demand through example
Q. It is probable that trade based on external scale economies can leave a country worse off than it could have been without trade. Illustrate how this could happen. Answer:
part of the return on the investment comes from the asset itself and part from the currency of the foreign currency. agree or disagree?
What is the learning of International Economics to the social networking sites
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