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Q. How and why did Europe set up its single currency?
Answer: The why part of the question is associated to large fluctuations in the exchange rates between the European countries disturbed trade. As well one of the major reasons was to design a way to prevent future world war. The how part of the question is associated to the fall down of Breton woods and the European Currency reform of 1969-1978. The Werner Report of 1971 set up a three-phase program to lead to the EMU.
how is exchange rate determined.
Vernon's product cycle theory
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Q. Should the IMF be abolished? Discuss. Answer: Arguments for eliminating the IMF must mention moral hazard and insistence on high interest rates and hasty structural
Detail about offer Curves
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
Q. What is the interest parity condition? Answer: The circumstance that the expected returns on deposits of any two currencies are equal when measured in the same currency is
Habrrler''s oppirtunity cost theory
give notes on the alternative theories to trade
Critically evaluate adam smith''s theory of absolute advantage, outlining the assumptions necessary for the theory. Criticism of the theory?
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