EC340_Problem_Set_2

EC340_Problem_Set_2 - ) c. (1 points) Marshall-Lerner...

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EC 340-001 Fall 2011 Dr. Kreinin Problem Set 2 Due in the class on Tuesday, October 18 1. (2 points) Question #7. in the textbook page 293. 2. Read Chapter 14 from the textbook and explain/summarize the following topics related to relative price approach to devaluation. a. (2 points) Effect on Dollar Inpayments (explain and draw a graph ) b. (2 points) Effect on Dollar Outpayments (explain and draw a graph
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Unformatted text preview: ) c. (1 points) Marshall-Lerner condition - page 316 (explain) d. (1 points) Domestic Income Effect (explain) e. (1 points) Domestic Price Effect (explain) f. (1 points) Redistribution of Domestic Resources (explain) 3. (2 points) Read Chapter 14 from the textbook and explain/summarize Absorption Approach...
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