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Q. Explain about Banking Cycle?
An economic cycle that results from cyclical changes in the attitudes of banks toward lending risk. When economic times are good, bankers become optimistic that their loans would be repaid, and therefore they expand their lending. More credit means even stronger economic times and so on. Opposite takes place when economy becomes weaker: bankers begin to fear more defaults on their loans therefore they issue fewer loans, and henceforth economy weakens even further.
SHORT PERIOD ANALYSIS: Short period in production refers to a time when some inputs remain fixed. A fixed input is one, whose quantity cannot be changed readily, whereas, a va
Production with Two Variable Inputs * There is relationship between productivity and production. * Long run production K& L are variable. * Isoquants analyze and compa
what is the differences between utility theory, indifference theory and revealed preference theory
Arbitration The use of a third party to describe between two sides dead locked in a negotiation. The arbitrator's decision can be binding or not binding, as before agreed upon
In an industry with two firms, represent the outputs for these single product firms as q 1 and q 2 . The two firms decide to form a cartel and set their levels of output to maxim
Rationale in era of globalisation: In the present era of globalisation where countries have unprecedented access to international capital flows and where those who have borrow
Ask quesThe market demand for brand X has been estimated as Qx = 1,500 - 3Px - 0.05I - 2.5Py + 7.5Pz where Px is the price of brand X, I is per-capita income, Py is the price of
what is the theory of second best ? prove the theorem with the help of a diagram .
Determinants of the Income Elasticity of the Demand: The determinants of income elasticity of demand are given below: The Degree of necessity of the commodity.
WHAT ARE ROLE AND ASUMPTIONS OF ECONOMIC THEORIES
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