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Q. Explain the purpose of the given figure?
Answer: To demonstrate that spot and forward exchange rates are in general close to each other.
Special and Differential treatment
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
ABOUT THIS THEORY
Q. Is Europe an optimum currency area? Answer: Yes the area's economy is strongly integrated with its own: most EU members export as of 10 to 20 percent of their output
Identify and explain the three basic economic question that the group of survivors will have to answer everyday
Reform of international monetary affairs
definitions;types
what is opportunity cost
review the general equilibrium conditions under autarky and given free trade using the opportunity cost theory of trade
discuss the possibility of trade if factor endowment are identical and tasde is different
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