Examlex
Exclusion restrictions are said to be imposed in a two-equation simultaneous equations model if it is assumed that:
Exports
Products or services made in one country and purchased by consumers in a different country, adding to the exporting nation's overall economic output.
Interest Rates
The cost of borrowing money or the return for investing money, usually expressed as a percentage of the principal per period of time.
Tight Money Policy
A monetary policy strategy used by central banks to reduce the money supply and increase interest rates to control inflation.
Net Exports
The difference between a country's total value of exports and total value of imports. Positive net exports indicate a trade surplus, while negative net exports indicate a trade deficit.
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