Hello, is question g relevant to this case?
Paper 2 question on market failure and indirect taxationKristina I meant to say a devaluation will always cause a fall in the volume of imports, not the value. So a depreciation will make imports more expensive and so fewer of them will be bought. The PED then determines whether or not...
The Marshall-Lerner condition / J curve (HL only)Correct, Kristina, I have changed that now.
Paper 3 question on balance of payments and FDIHi Mark, thanks for explanation, but still I am not quite sure. I understand that PED=0,3, so it means that rice in prices of 10% (=devaluation of 10%) cause 3% fall in quantity imported. But again, in Activity 2 b) it is said that there is 3% rise...
The Marshall-Lerner condition / J curve (HL only)Hi Mark, thanks for explanation, but still I am not quite sure. I understand that PED=0,3, so it means that rice in prices of 10% (=devaluation of 10%) cause 3% fall in quantity imported. But again, in Activity 2 b) it is said that there is 3% rise...
The Marshall-Lerner condition / J curve (HL only)Hi, in PDF file of Question 2 - Paper three questions, ii table is filled in already with some figures, but not right answers? Is it a mistake? Thanks. Regards. Kristina
Paper 3 question on balance of payments and FDII think we can Andres, the mark scheme suggests shifts in AS and that could be SRAS or LRAS or of course, the Keynesian AS curves.
Paper 2 question on demand-side policies, recession and unemploymentHello, question about the answer for (f)... it mentions the AS would be shifting towards the right; although I agree, should we consider the LRAS or in the Keynesian model the AS shifting towards the right? It's talking about "productivity" which...
Paper 2 question on demand-side policies, recession and unemploymentMe too, Kevin, I have changed that.
Floating exchange rates
Mark
Site authorNo Anna, it is something of a typo, being the g to a different question, on EVs, I will change that.
Paper 2 question on market failure and indirect taxation