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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. 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
Q. The United States seems at times to have a totally schizophrenic attitude toward protectionism. The United States was the country that proposed the establishment of the World
Q. It is argued that the United States could be foolish to maintain a free-trade stance in a world in which all other countries exploit prisoner or child labor, or are protectioni
Q . While selling exports it could also maximize its domestic sales by equating its marginal (opportunity) cost to its marginal revenue of $5. How much steel could the firm sell
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Why would interest rate parity hold better than Purchasing power parity overtime?
Q. What are the factors that determine the amount of money an individual desires to hold? Answer: Three major factors that are first one the expected return the asset offers co
Q. Describe and explain the relationship between expected inflation rates in two countries and their interest rate differential according to the PPP theory. Answer: Expected p
Offer curves with example and explabation
In the International Medical Center, clients are patients who use the services provided by the hospital, such as the health program, preventive services, and surgery. Other custom
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