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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.
Explanation of haberler opportunity cost with diagrams
Q. Albania refused to engage in international trade for ideological reasons. To maximize its economic welfare it could choose to produce at which point in the diagram above? Sup
how do I graph partial equilibrium analysis with transport costs
Porter Competitive Forces Model: Effectively dealing with the competitive forces that exist within its industry lead to a successful organization. The organization i
Explain the Financial Revolution and Monetary Affairs
Q. Explain how the money markets of two countries are linked through the foreign exchange market. Answer: The financial policy actions by the Fed affect the U.S. interest rate
Q. The Heckscher-Ohlin model is famous for being elegant and mathematically sophisticated, yet failing to define reality. One manifestation of this fact is Trefler's Case of Missi
Critical evaluation of Adam Smith''s Theory. Outline of its purest form. What is its critism?
Q. What is the national income identity for an open economy? Answer: Y = C + I + G + EX - IM.
Why would interest rate parity hold better than Purchasing power parity overtime?
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