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Q. Explain how the money markets of two countries are linked through the foreign exchange market. Answer: The financial policy actions by the Fed affect the U.S. interest rate
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what are the theories supporting protectionism
give notes on the alternative theories to trade
Q. Explain the purpose of the given figure? Answer: To demonstrate that spot and forward exchange rates are in general close to each other.
Q. Explain why under fixed exchange rate, monetary policy is ineffective whereas under floating exchange rate it is effective in rising output. Answer: In floating by purchasi
part of the return on the investment comes from the asset itself and part from the currency of the foreign currency. agree or disagree?
Q. Who are the major participants in the foreign exchange market? Answer: 1. Commercial banks 2. Corporations 3. Nonblank financial institutions 4. Central banks
Q. What is the national income identity for an open economy? Answer: Y = C + I + G + EX - IM.
Brifly explaine the alternative explanation to the theory of international trade
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