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Q. How can international trade in assets make both countries better off?
Answer: By permitting them to reduce the riskiness of the return on their wealth and by allowing the two parties to diversify their portfolios that is to divide their wealth among a wider spectrum of assets and therefore reduce the amount of money placed on one specific asset.
discuss the superiority of haberler''s theory of opportuinity cost over mill''s theory reciprocal demand?
Summarized the basic tenets of the arguments in this case
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Q. Explain Purchasing Power Parity. Answer: PPP () states that the exchange rate between two countries' currencies equals the ratio of the countries' price levels.
Q. Other things being equal, a rise in a country's terms of trade enhances its welfare. What could happen if we relax the ceteris paribus assumption, and allow for the law of dema
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Q. Why is it useful to make a distinction between debt and equity instruments? Answer: Debt instruments such as bank deposits and bonds are repaid regardless of econo
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