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The bank rate is the interest rate on loans that the Bank of Canada makes to banks. Banks occasionally borrow from the Bank of Canada when they find themselves short on reserves. A lower bank rate (decreases/increases) banks' incentives to borrow reserves from the Bank of Canada, thereby (reducing/increasing) the quantity of reserves in the banking system and causing the money supply to (fall/rise)
The overnight rate is the interest rate that banks charge one another for short-term (typically overnight) loans. When the Bank of Canada uses open-market operations to buy government bonds, the quantity of reserves in the banking system (increases/decreases), banks' demand for borrowed reserves (declines/rises), and the overnight rate (increases/decreases)
This document contains various important questions and their appropriate answers in the subject field of Economics.
Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.
Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..
Explain each of the following using supply and demand diagrams, With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.
The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.
Draw the production possibility curve and a. Define consumer surplus and producer surplus.
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The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled
Depict the von Neumann-Morgenstern utility index u in a diagram
What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution
Calculate gross national product and net national product
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