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Flexible exchange rate system:
A country is linked to other countries through two broad channels: trade flows andfinancial flows. Trade flows pertain to movement of goods and services betweencountries and thus facilitate exchange of products between countries, commonlyknown as exports and imports. When countries produce more than what they candomestically consume, they export. Similarly, when countries consume more than whatthey can produce, they import.Thus, there would be balancing of production surpluses and deficit when trade takesplace between countries.The implications of the above formulations, (i.e., trade flows) on the components ofaggregate demand (AD) would be to include net exports [i.e., exports(X) - imports(M)] such that
AD = C + I + G + X - M
where,C: Consumption
I:Investment
G: Government Expenditure
S: SavingsThis would mean that
QUESTION 1 (a) Explain how CAPM provides a framework for measuring the systematic risk of an individual security in a well-diversified portfolio, using the concept of security
Marris'' Model OF MAXIMISING POLICY
summarize the basic tenets of the arguments in case
#sources of oligopolyn..
Growth in Private Capital Flows is explained below: There has been a extraordinary growth in private capital flows since the 1990s. For instance, the value of capital flow tran
MBA - MACROECONOMICS ASSIGNMENT Professor Instructions Abide by following points or no credit will be given for your answers: • Concise and to-the-point answersare what
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