Foreign Exchange Market , International Economics

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Substantial current account deficit, Q. What are the reasons for the world ...

Q. What are the reasons for the world as a whole running a substantial current account deficit? Answer: This deficit improved sharply in the early 1980s and has remained high.

Is a depreciation of the dollar/euro exchange rate, Is a depreciation of th...

Is a depreciation of the dollar/euro exchange rate correlated with a decrease in the dollar return on U.S. deposits? Answer:  No, suppose that the Interest Parity is maintained

Free trade, what are the limitations of net barter terms of trade

what are the limitations of net barter terms of trade

Source of comparative advantage, The Source of Comparative Advantage can be...

The Source of Comparative Advantage can be understood as follows: The source of comparative advantage could be productivity differential (Ricardo) or differences in the factor

Economic decline, Q. In 1986, the price of oil on world markets dropped sha...

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

How can long-run values in the real exchange rate change, Q. How can ...

Q. How can long-run values in the real exchange rate change? Answer: A elevate in world relative demand for U.S output origins a long-run real appreciation of the dollar

Describe the main provisions of maastricht treaty of 1991, Q. Descr...

Q. Describe the main provisions of the Maastricht Treaty of 1991. Answer: It identified for a single currency by January 1/1999 harmonizing social security policy insid

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