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Question:
(a) State whether the following statements are TRUE or FALSE. Justify briefly your answer.
(i) Money is the most liquid medium to store value.
(ii) An increase in money in circulation leads to a proportionate increase in the general level of prices.
(iii) There is no relationship between the demand for money and interest rate.
American and European monetary authorities implemented expansionary monetary policies to fight recession in 2008 and 2009.
(i) Use the model of money supply to justify the relevance of an expansionary monetary policy during periods of recession.
(ii) Analyse the transmission mechanism of the above monetary policy to the real economy and discuss its efficiency.
What are colonial background countries of the development process? A colony is a country controlled by other. Various European countries had extensive empires as: • Latin
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What is the difference between absolute and comparative advantage? Difference between absolute and comparative advantage: • Absolute advantage arises while a country or reg
How did foreign debt arise? Evaluation: Borrowing shows an injection of new resources in the domestic economy and also an opportunity for development. • When borrowed re
how does occupation affect the size of labour force
How can trade Liberalisation mean eliminating barriers? Trade liberalisation is the removal of trade restrictions for example tariffs, quotas and non-trade barriers is unsynch
Problem 1 Different purposes of reading require different methods of reading. Describe the various ways of reading. What are the techniques that you can use to improve your rea
1. (classical monopoly pricing) A monopolist faces a demand curve q (p) = 100 p: (a) If its cost function is C (q) = 2q; what is the optimal level of price and quantity? (b
summarize the basic tenets of the arguments in case
What are institutions? Institutions are formal organisations as like: • Government : the group of some people and institutions who control and manage a country Civic socie
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