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qexplain why east asian countries have done so well relative to south american countriesanswer generally the reasons are less moral hazard less
q the 1980s are considered as the lost decade of latin american growth explain whyanswer whilst the great depression made it hard for developing
q evaluate the economic policies of juan peron the husband of the famous evita answer once peron got the power in 1946 in argentina the
q illustrate why argentina one of the worlds richest countries at the begning of the twentieth century has become progressively poorer relative to
qwrite an essay on the importance of a sound banking system in developing countriesanswer students must describe the phenomena of moral hazard as a
q explain why in exchange rate-based stabilization plan may result in a real appreciationanswer annotation 8 gives three reasons first persistent
qexplain why despite enormous natural resources much of latin americas population remains in poverty and the region has been repeatedly experiencing
q explain why the distinction between debt and equity finance is useful in analyzing the response of developing countries to unforeseen events such
qdescribe alternative forms of capital inflow to finance external deficits and explain why these methods were used in different timesanswer the
q what factors lie behind capital inflows to the developing world answer several developing countries have received a lot of capital
q what explains the sharply divergent long-run growth patternsanswer it lies in the political and economic features of developing countries
q what is the fisher effect provide an exampleanswer all moreover equal a rise in a countrys expected inflation rate will ultimately cause an
qdescribe and explain the relationship between expected inflation rates in two countries and their interest rate differential according to the ppp
q discuss the effects of ongoing inflation based on the ppp theoryanswer other things equivalent money supply growth at a constant rate
q what are the predictions for the long run of the monetary approach answer money supplies- known the equationsee puspepus msuslr yus
q present and explain the fundamental equation of the monetary approach answer suppose ee puspe and that domestic price levels depend on
q explain why the exchange rate model based on ppp is a long-run theoryanswer ppp theory is a financial approach to the exchange rate it is
qexplain why relative ppp is useful when comparing countries that base their price levels on different product basketsanswer for instance if the us
q discuss the differences between absolute ppp and relative pppanswer absolute purchasing power parity ppp states that the exchange rate
q discuss the relationship between ppp and the law of one priceanswer the law of one price is applies to individual commodities while
q explain purchasing power parityanswer ppp states that the exchange rate between two countries currencies equals the ratio of the
q explain the law of one price give an exampleanswer the law of one price affirms that in competitive markets free of transportation costs
qexplain the effects of a permanent increase in the us money supply in the short run and in the long run assume that the us real national income is
qalthough the price levels appear to display short-run stickiness in many countries a change in the money supply creates immediate demand and cost
qexplain how the money markets of two countries are linked through the foreign exchange marketanswer the financial policy actions by the fed affect