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Q. 1. a. Differentiate between monetary policy instruments and monetary policy toolsb. Describe the two key tools of monetary policy, and describe how they would be used by the Bank of Canada to implement a contraction monetary policy.
2. The economy of Kenya is in downturn as well as the recessionary gap is large. The World Bank hires you as its economist and asks you to.
a. describe the discretionary and automatic fiscal policy actions that might occur.
b. describe a discretionary fiscal stimulation package that could be used that would not bring a budget deficit.
c. describe the risks of discretionary fiscal policy in this situation.
d. explain the argument that lower corporate tax rates can increase tax income in Kenya. Reflect on the Laffer curve in your explanation.
Draw a graph of the market for chewing gum. What are the equilibrium price and quantity? Mark the equilibrium price and quantity in the graph.
Which among the equation will you choose for a better demand estimation. Illustrate answer in the language of statistics.
What are the components of aggregate expenditure. What determines the slope of the aggregate expenditure line.
How would you use these cost and revenue estimates to determine whether a sales force increase or possibly a decrease is warranted.
How much is the uniform annual revenue in years 2 through 5 to achieve economic equivalence if the company decides to use MARR.
Illustrate the significance of resource pricing explain rule or criteria of employing for resources under pure and perfect competition.
Quantity, whole revenue and profit when company charges different price in each market and exploits its total profit.
Youngstown sold most of its output in the Midwest. Was this fact relevant.
In long run, what would you expect to happen to the price of steelin U.S. and Germany. What would be the price differential.
Which of the government policies below is not likely to encourage per capita economic growth.
If fixed costs increase to $1200, what will happen to equilibrium price and quantity.
Enterprises conduct business transactions with other enterprises for a number of economic, business and strategic motivations.
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