write short notes on autonomous transactions and accommodating transac
distinguish between autonomous transactions and accommodating transactions under balance of payments
Assume that El Salvador can generate coffee at lower opportunity costs than Spain, whereas Spain can generate olive oil at lower opportunity costs than El Salvador. The citizens of both countries can potentially profit from international trade since of the efficiency
Which transactions find out the balance of trade? When the balance of trade is in surplus?
State the two sources of demand of foreign exchange: Import of services and goods and to acquire education in abroad.
Who rediscovered Bachelier’s thesis?
If exchange rate of foreign currency downs or falls, its demand rises. Describe how? Answer: If exchange rate falls, an import become cheaper, demand for imports in
Peanut butter, jelly sandwiches and tuna fish sandwiches are replacements. Assume an international agreement decreased the worldwide catch of tuna by half. The equilibrium price of grape jelly would be: (1) Increases while the equilibrium quantity is reduced. (2) Drop
suppose that an investor has an extra cash reserve of $1000000 to invest for one year. annually rate is 10%
Autonomous or public investment: It is a type of investment that is not of profit motivated.
Who won the Nobel Prize for Economics in 1997?
5. What are the factors responsible for the recent surge in international portfolio investment?
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