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Solve it plzzzzz 1. Briefly outline Keynes Theory of Liquidy Preference. 2. How does the Purchasing Power Parity Theory explain variations of cur- rency exchange

Solve it plzzzzz

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1. Briefly outline Keynes Theory of Liquidy Preference. 2. How does the Purchasing Power Parity Theory explain variations of cur- rency exchange rates? 3. How does a government budget deficit cause the real exchange rate to appreciate? 4. What is the effect of an import quota on net exports? 5. Should the government balance its budget? Under which conditions can a budget deficit be justified? Discuss

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