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Answer to Question #14287 in Macroeconomics for Nita

Question #14287
1. Flexible and floating exchange rates offer an effective international
monetary arrangement. Discuss.
2. Why would Namibia export clothing to China, and also import clothing
from China? <why do countries trade in the same types of goods? –
intra-industry trade>
3. What is the effect of high inflation on the national currency?
4. What is exchange rate purchasing power parity? Why is it useful?
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