ppp, International Economics

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Fixed-exchange rate area, Q. "The costs and benefits for a country from jo...

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.

Regain internal and external balance after first oil shock, Q. How did coun...

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 an

Long term self-generated economic growth, Q. It can be argued that Japan's...

Q. It can be argued that Japan's explicit promotion of its microchip industry was an excellent paradigm of successful industrial policy. What criteria could you apply to calculat

Explain why under the gold standard a perpetual surplus, Q. Explain why und...

Q. Explain why under the gold standard a perpetual surplus or a perpetual deficit is impossible. Answer: Since specie inflows drive up domestic prices and restore symmetry in

What is the exchange rate risk facing parson company, Question: a) With...

Question: a) With the help of illustrative and numerical examples explain fully the concepts of spatial and triangular parity and arbitrage in the context of foreign exchange.

Discuss differences between absolute ppp and relative ppp, Discuss the diff...

Discuss the differences between Absolute PPP and Relative PPP . Answer:  Absolute Purchasing Power Parity (PPP) states that the exchange rate between two currencies equals the

Explain cost of production in terms of world trade, Q. If scale economies ...

Q. If scale economies were not only external to firms, but were also external to individual sites. That is, the larger the worldwide industry (regardless of where plants or firms

Why the fdic is following a too-big-to-fail policy, Q. Explain why the FDIC...

Q. Explain why the FDIC is following a "too-big-to-fail" policy of fully protecting all depositors at the largest banks. Answer: It is a tricky question the FDIC does that even

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