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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.
Should the bank not have anyone to lend the demand deposit to (like that will ever happen) would the size of the money multiplier decrease? If so, why?
what is stagnation thesis?
What is meant by minimum wage? The minimum wage is the minimum rate a worker can legally be paid (usually per hour) as opposed to wages that are examined by the forces of sup
In an essay of at least four well-developed paragraphs, discuss U.S. economic policy. Be sure to include the following information in your essay: Compare and contrast the economi
Explain crowding out and why it may be considered important for policy makers. Crowding out refers to how enhanced government borrowing (real borrowing!) might serve to raise i
Problem: i) Differentiate between economic development and economic growth. ii) Describe carefully how, using the expenditure approach, national income is calculated. ii
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Factors determine the price elasticity of supply: The price elasticity of supply varies widely across different products. Some products have more leastic supply, while others
what is the langrangian function
illustrate and explain the changing demand gor big Mac using the indifference curves and budget line
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