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Q. What will be the effects of an increase in the money supply on the interest rate?
Answer: An enhance in the money supply will origins the interest rate to decrease. This must increase investment and possibly consumption of durable goods. The decreases in the interest rate will origins a depreciation of the dollar.
Q. Describe the effects of the Smoot-Hawley tariff imposed by the United States in 1930. Answer: It had a damaging consequence on employment abroad. The foreign response occu
International monetary system
It is argued that a tarriff may help promote employment in a single industry, but is not likely to help employment in general
Offer curves with example and explabation
Is a depreciation of the dollar/euro exchange rate correlated with a decrease in the dollar return on U.S. deposits? Answer: No, suppose that the Interest Parity is maintained
Q. Should the IMF be abolished? Discuss. Answer: Arguments for eliminating the IMF must mention moral hazard and insistence on high interest rates and hasty structural
discus how every economy is essentially part of the international economy
Explain about International economic integration. EU
Q. What are the factors that determine the amount of money an individual desires to hold? Answer: Three major factors that are first one the expected return the asset offers co
Q. What is the Fisher Effect? Provide an example. Answer: All moreover equal a rise in a country's expected inflation rate will ultimately cause an equal rise in the i
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