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Q. How did countries use their policy tools to regain internal and external balance after the first oil shock of 1973?
Answer: Seeing that the recession deepened over 1974 and early 1975 most governments shifted to expansionary economic and monetary policies. The OPEC countries couldn't go up spending quickly enough to match their increased real income and were running a substantial current account excess in 1975 and 1976.
Q. Consider how the United States' balance of payments accounts are affected when U.S. banks give two billion in debt owed to them by the government of Argentina. Answer: In
Q. Explain why in practice the extent to which a measured balance of payments disparity, either a surplus or a deficit, will affect home and foreign money supply is quite uncertain
Question 1: (a) To what extent does the structural change model of Lewis adequately portrays the development phases in most developing countries? (b) Discuss the principal a
who looses from tarrif and quota?
Q. In 1986, the price of oil on world markets dropped sharply. Since the United States is an oil-importing country, this was widely regarded as good for the U.S. economy. Yet in
explain the law of reciprocal demand trade theory of marshall
Q. Who are the major participants in the foreign exchange market? Answer: 1. Commercial banks 2. Corporations 3. Nonblank financial institutions 4. Central banks
Explain about the Business Economists and the MNC
Q. Explain why, according to Feldstein and Horioka, one should expect that domestic investment rates diverge widely from saving rates. Answer: The decisions of corporations t
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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