Answer the following questions, each question should fill up to 1 page:
*2. Evaluate flexible and fixed exchange rates.
*3. Explain how the exchange rates, in a flexible exchange rate regime and in a fixed exchange rate world, are affected by deficits and surpluses.
4. Describe the different accounts of the balance of payments.
10. Elaborate on the two reasons for trade. They are
a. (Factor Endowments Theory) Comparative Advantage
b. Demand reasons of Stephan Burmeister Linder
(Need this all done this week)
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