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Explain the complexities in the annalysis of balance of payment equilibrium
Critically evaluate the theory and outline the necessary assumptions for the theory to hold in it''s purest form
Road,railway,air and shlping transportation
Q. "The balance of payments is always balanced." Discuss. Answer: True each international transaction automatically enters the balance of payments twice once as a debit and o
Q. Explain how a rise in real income affects aggregate demand. Answer: An increase in domestic real income Y leads to a rise in disposable income Yd. This increases
What are disadvantages the classical theory of international trade
derive the eqilibrium equation for the trade balance
Q. Explain how an increase in government spending would affect the DD-AA schedule in the short run. Answer: A raise in government spending will raise aggregate demand, which wi
Critically evaluate the classical theory of international trade
Q. What are the reasons for the world as a whole running a substantial current account deficit? Answer: This deficit improved sharply in the early 1980s and has remained high.
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