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Q. What do you think about dollarization?
Answer: The respond is almost certainly a bad idea unless in the very short run. It must talk about the loss of seigniorage and the gain in credibility against devaluation which should lead to lower domestic interest rates. Must mention the importance of political will to repair the fundamental economic weaknesses of the country
Explain Ohlin theory of International trade
Explain about International economic integration. EU
Q. Define countertrade. Discuss the different forms of countertrade? Counter trade means all types of foreign trade in which the sale of goods to another country is associated
ABOUT THIS THEORY
Q. To answer the following question, please refer to the figure below. Concentrating only at the lower left quadrant, discuss the relationship between the U.S. real money supply a
tion..What is the range of gross barter terms of trade ?
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Q. Using figures for both the short run and the long run, show the effects of a permanent increase in the U.S. money supply. Try to line up your figures to the short and long run
Q. Suppose E is fixed at E 0 and that the asset markets are in equilibrium. Suddenly output rises. What monetary measures keep the current exchange rate constant given unchanged e
Q. Using a figure describing both the U.S. money market and the foreign exchange market, analyze the effects of a temporary increase in the European money supply on the dollar/euro
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