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Q. Why did the Fed step in to organize a rescue for Long Term Capital Management (LTCM) in September 1998, rather than simply letting the trouble fund fail? Was the Fed's action necessary or advisable?
Answer: To evade what the Fed perceived as a probable meltdown of international banking caused by the crisis in Russia and when Asia and Latin American economies were previously facing a steep economic slowdown. The trouble is moral hazard again.
Welfare Effects of Tariff can be understood as follows: It is important to understand what the welfare effects for the tariff are. While a tariff might seem desirable because i
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Q. Evaluate the economic policies of Juan Peron, the husband of the famous Evita? Answer: Once Peron got the power in 1946 in Argentina the economy that at that time
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