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Q. Calculate the effects of the fall in the relative price of good 2 on the income of the specific factors capital and land.
Answer: For the reason that good 2 uses land, a fall in its comparative price will result in a fall in rental rates on land, and an enhance in the return to capital.
Q. What are the three main reasons why governments sometimes chose to devalue their currencies? Answer: 1. Permit the government to fight domestic unemployment despite the
Explain the Partial Globalization of International Finance
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TERMS OF TRADE MEANING AND NET BARTER TERMS OF TRADE MEANING TABLE DIAGRAM
Reform of international monetary affairs
What are the predictions for the long run of the Monetary Approach? Answer: Money supplies- Known the equations
2. If a country's growth is biased in favor of its import, this should unequivocally improve its terms of trade and its economic welfare. Discuss. Answer: Suppose the Japan
Q. Using the GG - LL framework, analyze the effect of an increase in the size and frequency of sudden shifts in the demand for a country's exports. Answer: Such a alter pus
using diagrams, corden''s theory of customs union under conditions of oligopoly and within the existence of external economics of scale.
Q. Explain the following figure: Answer : The figure explicate how the money markets of two countries are linked through the foreign exchange market. The financial pol
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