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Globalization
The procedure of interlinking financial markets in various countries into a common, world pool of funds to be accessed by both between borrowers and lenders. It came about as a result of the growth in international trade.
what is opportunity cost
Is there is Few or many national currencies
Q. What is the national income identity for a closed economy? Answer: Y = C + I + G.
Q. What is the domino effect or contagion? Answer: The definition is the defencelessness of even seemingly healthy economies to crisis of confidence generated by events
Explain why the exchange rate model based on PPP is a long-run theory. Answer: PPP theory is a financial approach to the exchange rate. It is a long-run theory for the reason
Postwar trade theory
Q. Explain how the timing of a balance of payment crisis is determined. Be careful to state all assumptions. Answer: The assumptions of the model are: Prices are el
Critical evaluation of Adam Smith''s Theory. Outline of its purest form. What is its critism?
Explain the law of demand. Briefly discussed the exception to the law of demand
Q. If the central bank does not purchase foreign assets when output increases but instead holds the money stock constant, can it still keep the exchange rate fixed at E 0 ? An
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