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Bank notes and coins together constitute the currency in circulation. But they form only a part of the total money supply. The larger part of the money supply in circulation today consists of bank deposits. Bank deposits can either be a current account or deposit account. These are created by commercial banks and the process is called credit creation.
The ability of banks to create deposit money depends on the fact that bank deposits need to be only fractionally backed by notes and coins. Because the bank does not need to keep 100 per cent reserves, it can use some of the money deposited to purchase income-yielding investments.
Demand-pull inflation is when aggregate demand exceeds the value of output (measured in constant prices) at full employment. The excess demand of goods and services cannot be met
Find price for demand of 105000 exhaust fans, function is 462-5/7q for demand and p-6/7q for supply. find supply at 312, equilibrium qt and price
Peanut butter monopolist Calvé supplies peanut butter to Albert Heijn in an isolated village. The supermarket is a monopolist in the village. Demand for peanut butter is given by:
Explain trend projection method of demand forecasting with illustration.
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Ozark Bottled Water Products Inc
Why we need to distinguish between private cost and social cost?
Disadvantages of the Planned System The centrally planned economies suffer from the following limitations: Lack of choice: Consumers have little influence over what is p
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