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Q. Using an equation, explain why governments prefer to avoid excessive current account surpluses.
Answer: This pursue from the national income identity S = CA + I which says that total domestic savings S is divided among foreign asset accumulation CA and domestic investment I.
International monetary system
illustrate the circular flow of income of an open economy and explain the effects of various injections and withdrawal in the circular flow?
Difference between net barter terms of trade and gross barter terms of trade
What is trade under decreasing opportunity cost?
WHAT ARE THE METHODS OF FDI
explain the basis for international trade
can Lesotho afford an independent monetary policy
Q. Why are prices of factors of production not equalized? Answer: Again this statement may not or may be argued to be true. On the other hand, the growth and large volume in
Economic Theory 1. Explain the procedure of factor price determination under imperfect competition. 2. Discuss the Wage Fund Theory of Wage Determination. 3. Explain the
Q. One of the usually used assumptions in deriving the Heckscher-Ohlin model is that tastes are homothetic, or that if the per capita incomes were the similar in two countries, th
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