Analyze the portfolio balance model, including its assumptions and presentation and explanation of its main diagram. Using
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- Analyze the portfolio balance model, including its assumptions and presentation and explanation of its main diagram.
Using the diagram in part (a) above (use the same diagram, no need to re-draw), analyze the short-run effects of a fall in the world interest rate.
Explain carefully and intuitively. Briefly outline what may be the long-run effects of this exogenous change.
Related Book For
International Economics Theory and Policy
ISBN: 978-0273754206
9th Edition
Authors: Paul R. Krugman, Maurice Obstfeld, Marc J. Melitz
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