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Q. Discuss the main factors affecting the position of the AA schedule.
Answer: Revolutionize in the domestic money supply changes in the domestic price level changes in the expected future exchange rate changes in the foreign interest rate and shifts in the aggregate real money demand schedule.
The recessionary gap in a country is $1 trillion. The spending multiplier is 5. For every $50 billion borrowed, interest rates increase by 0.1 %. For every 0.1% increase in interes
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Assume that Deborah Electronics expects a delivery of Fujitsu laptops in a month from a Japanese supplier. Each laptop sells at $1000 in a retail market whereas the import cost is
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