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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.
Q. The Metzler Paradox is a special case of the optimum tariff idea. Discuss this assertion. Could the optimum tariff tend to be a high one or a low one in the case where this p
It is argued that a tarriff may help promote employment in a single industry, but is not likely to help employment in general
Q. Why do governments prefer to avoid current account deficits that are too large? Answer: A current account debit may possibly pose no problem if the borrowed funds
Q. How A Central Bank Fixes the Exchange Rate? Answer: The Central bank should always be willing to trade currencies at the fixed exchange rate with the private actors in the f
Budget: An estimate of all anticipated revenue and expenditure of the government for the ensuing financial year is called budget. The budget of the state is a document contain
Q. Countries that are willing to tolerate an unusually high quantity of pollution relative to their supplies of other factors would leads to export "pollution-intensive" goods. D
Postwar trade theory
Discuss the relationship between PPP and the Law of One Price. Answer: The law of one price is applies to individual commodities while Purchasing Power Parity applies to the g
Lot of
Given the following hypothetical data (in millions of naira): 1. gross private domestic investment N59 2. contributors for social insurance N8 3. inter
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