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Q. What is the domino effect or contagion?
Answer: The definition is the defencelessness of even seemingly healthy economies to crisis of confidence generated by events elsewhere in the world. Must provide examples like the Thai crisis which provoked another crisis in South Korea a much larger economy some 7,000 miles away Or the Russian crisis sparking huge speculation against the Brazil's real.
Q. Imagine that the economy is at a point on the DD-AA schedule that is above both AA and DD and where both the output and asset markets are out of equilibrium. Explain what will h
Explanations of FDI and the MNC
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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
Q. Explain the difference between the following two expressions: Y = C(Y d ) + I + G + CA(EP*/P, Y d ) and Y = C + I +G + CA Answer: The first expression corresponds to a
Q. The Heckscher-Ohlin model is famous for being elegant and mathematically sophisticated, yet failing to define reality. One manifestation of this fact is Trefler's Case of Missi
Q. "Under floating rates, the economy is more vulnerable to shocks coming from the domestic money market." Discuss. Answer: It is true statement, under floating rates an incr
what is net barter terms of trade and the effect on its economy
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