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Unformatted text preview: the examples you give and the theory of the second best. Comment on the suggestion that the possibility of immiserizing growth provides an argument against the liberalization of international F ows of capital or technology. 3) Suppose that a large country makes a transfer to its trading partner. Explain how the donors terms of trade depend upon (i) the magnitude of the sum of the countries marginal propensity to import, and (ii) the stability of the pre-transfer equilibrium. 1...
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This note was uploaded on 08/01/2008 for the course ARE 201 taught by Professor Karp during the Fall '07 term at University of California, Berkeley.
- Fall '07