Suppose that trade in asset is not allowed but the two countries sign a treaty that guarantee the sending of 25 tons of kiwi in good time by the high output country in that season. What will the outcome of such a treaty? Explain why
What will be an ideal response?
The outcomes will be exactly the same as in Case D above. In other words, rather than signing a treaty, just leaving the financial markets to function will lead us to the desirable results.
Economics
You might also like to view...
If the required reserve ratio is 10 percent, currency in circulation is $400 billion, checkable deposits are $800 billion, and excess reserves total $0.8 billion, then the M1 money multiplier is
A) 2.5. B) 1.67. C) 2.0. D) 0.601.
Economics
The demand for current consumption, as plotted against current income, shifts to the right due to all of the following except
A) a decrease in current taxes. B) a decrease in future taxes. C) an increase in current income. D) an increase in future income.
Economics