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How can surplus increase money suply?
Surplus in current account: Exports > imports. If exports > imports, demand for domestic currency rises thus there will be increase in money supply in the country.
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How can surplus increase money suply?
Please explain me this question.
Thanks in advance
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why is the answer B isnt it that country 1 has an absolute advantage in X ? not y?
You still have to come to A2 sis
View attachment 42407
why is the answer B isnt it that country 1 has an absolute advantage in X ? not y?
The answer is C
% change in price =4500-5000/5000 * 100 = -10%
Cross elasticity of demand = 20/-10 = -2
to do this u first use the formula of XED which is %change in qd of x/ % change in price of y in the question the xed is given -2 and qd %change is given 20 solve for X (with "X" being the %change in price of y) and u get -10 u then look through the choice and see what price change gives u -10 in this case opttion C is the one so answer is c
SitiPutri can u answer this one? ugghhh look at the previous page of this thread to see the question
AS & A2im giving AS
Can't do it lol it's my doubt as well. Could anyone do this please?
Eh wait I think I got it.
Okay so X, Y, Z possess 4 clocks at the same time. But it can't be like that because then the price for the clocks will vary from one collector to another (If X possess 4 clocks then the price of each clock is $1000 and if Y possess 4 clocks then the price of each clock is $2000. Thus the price is not fixed)
So, X, Y, Z come together to trade between each other in order to get a fixed price. Now look, when X possess 4 clocks, the price is $1000. On that price, Y could buy 6 clocks and Z could buy 9 clocks. But they can't trade because Y needs additional 2 clocks while Z needs additional 5 clocks.
And when Y possess 4 clocks, the price is $2000. On that price, X has to sell 2 clocks and Z has to buy 2 clocks in order to satisfy their demand schedule. Thus, trade will happen between X and Z with X as the seller and Z as the buyer.
Hope that makes sense haha if there's anyone else that could explain this better than me it'd be great!
Is the answer D?
Yes.
Again :O
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