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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.
Importance of International Trades : The basis of international trade is to be found in the diversity of economic resources in different countries. All countries have not been end
Q. What is the interest parity condition? Answer: The circumstance that the expected returns on deposits of any two currencies are equal when measured in the same currency is
What are disadvantages the classical theory of international trade
what is scope of international economics
discuss the central economic problem facing this group of survivors.
what is the current economic situation in the world?
Q. Explain why East Asian countries have done so well relative to South American countries. Answer: Generally the reasons are less moral hazard less government debt to forei
Q. Explain Purchasing Power Parity. Answer: PPP () states that the exchange rate between two countries' currencies equals the ratio of the countries' price levels.
Why we Devising an International Monetary System
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
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