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how is exchange rate determined.
Explain why the exchange rate model based on PPP is a long-run theory. Answer: PPP theory is a financial approach to the exchange rate. It is a long-run theory for the reason
diagram
Q. What are the three types of transactions between the residents of different countries? Answer: 1. Trades of services and goods for goods or services. 2
explain the basis for international trade
Explain Theoretical and methodological aspects of international economic relations
Explain the law of demand. Briefly discussed the exception to the law of demand
Q. "The costs and benefits for a country from joining a fixed-exchange rate area such as the EMS depend on how well-integrated its economy is with those of its potential partners.
Q. What is the national income identity for a closed economy? Answer: Y = C + I + G.
Q. "Even under flexible exchange rate regime, governments should not be indifferent to the behavior of inevitably and exchange rates surrendered some of their policy autonomy in o
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