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How might a country exchange rate influence the balance of payments?
Definition of the exchange rate; price of domestic currency in another (basket of) currency (currencies). Current account (trade and transfers) and capital account (net flows of investment, deposits etc). The link among a country s exchange rate and balance of payments is primarily to be found in current account; the currency also affects the price of goods and services for foreigners, thus a lower/higher price of the currency will affect demand for goods and services itemised under export revenue and import spending in the current account.
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Q. Describe the Theory of effective demand ? Effective Demand:Theory of effective demand was developed separately in the 1930s by Michal Kalecki andJohn Maynard Keynes. It eluc
An Exception: OECD Economies It isn't inevitable that there be such divergence. United States--with its 14 to 25-fold increase in output per worker over the years since 1870-ha
using the marginal utility approach discuss how economic theory explains the optimum pattern of consumption for an individual consumer
What is meant by dumping? Dumping is when a producing country dumps goods on foreign markets at a price lower than either the price on the home market or below the cost (HL: ma
determine if completeness and transitivity are satisfied for the following preferences defined on x=(x1,x2)and y=(y1,y2);if x>y or x=y and x2>y2,if for min{x1,x2}
Elasticity of Demand This is a measure of how responsive the sales volume of goods is to changes in that product's price, equal to the marginal change in sales, divided by the
Female-headed households: The high incidence of unemployment among the educated in general and women in a particular reflects that the pace of creation of diversified employme
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#quesUse a graphical illustration to describe briefly what the influence of each of the following would be on the market supply of labor:(a) an increase in immigration (b) more wom
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