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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.
unique products in monopoly
Resilience in Addition to Strength: The BOP has been in overall surplus since 1996-97 with forex reserves rising, on an average, by $8.50 billion per annum during 1996-97 to 2
Question : (a) Explain why each of the following factors may influence the own price elasticity of demand for a commodity. (i) Consumer preferences, that is, whether c
. Suppose fixed costs increase by $20. How will this affect TFC, TVC, TC, ATC, AVC and MC? Which numbers change and which stay the same?
the prevalence of excess capacity is the direct consequence of the existence of monopolistic competition
Average product and marginal product: Average product (AP) is the output per unit of the variable factor employed. In other words, it is the productivity of the variable facto
mixed strategy
illustration for demand of big macs using indifference curve and budget line
Patricia nominal annual income
Why government cannot print new currency to pay the debts? When there is deficiency of internal resources then government borrow. Government can borrow either from central ban
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