a) What is Walras Law? Explain using appropriate equations.( 10 marks) b) What is the justification...

a) What is Walras Law? Explain using appropriate equations.( 10 marks)

b) What is the justification for bb curve (bond market function) that is positively sloped and rather elastic? ( 15 marks)

c) Despite the disadvantages, why is fixed exchange rate preferred ( 10 marks)

Expert Solution

Rahul Sunny answered 2 years ago

What are the policy implications of Walras law?

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