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Banking Infrastructure:
An efficient financial system can influence the long-term growth through three important channels, namely: 1) increase in the proportion of saving transferred to investment spending, 2) augmenting private saving rate, and 3) improvement in the social marginal productivity. The financial intermediaries stimulate economic growth in two ways: (i) by channeling the individual saving into productive areas of development and (ii) by allowing the individuals to reduce risk associated with their liquidity needs. The creation of specialised financial institutions assumes significance in this regard because supply of credit to the poor involves high risk and carries exorbitant interest rates. The task of the special financial institutions would be to identify impediments to enhancing the productivity of existing assets and to find ways and means to overcome these and simultaneously to promote viable economic activities for the rural poor.
the difference between an lc3 and other types of businesses is that
write about the origin of sylos labini''s limit pricing model
Formulate the consumption function for Mauritius using appropriate theories and suggest values for the coefficients of the independent variables based on theories. Given it’s a tim
Explicit cost: Explicit costs are payments made by the firm when it purchases or hires factors of production for the production of goods and services. They are also referred t
1. Consider a world with two assets: a riskless asset paying a zero interest rate, and a risky asset whose return r can take values +10% or –8% with equal probability. An individua
Define law of demand. Answer: Quantity demanded increases as price falls, other things constant. In other words, "Other things remaining the same, when the price of a good r
Below are three questions. WRITE A BRIEF NOTE OF EXPLANATION IN ANSWER TO EACH PART OF EACH QUESTION. The marks awarded will depend on the quality of the reasoning exhibited and th
Consider an upstream firm in Russia that mines iron ore at a total cost of $15 q , where q is the number of tons of ore. This upstream firm then ships ore to Germany for processi
Use a PPF to explain the difference between actual and potential growth. The PPF shows possible output, taking into consideration all factors of production - but de facto outpu
Poverty: A state of having inadequate income or other resources to support a household (or group of households) at a basic standard of living. Poverty can be measured in absoluterr
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