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Problem 1
(a) Explain the evolution of exchange rate system in Mauritius.
(b) According to you, what factors determine exchange rates in the long run?
Problem 2
"Inflation is always and everywhere a monetary phenomenon." Discuss.
Problem 3
Clearly evaluate monetary policies that are available for banking and/or economic regulation.
Problem 4
Critically discuss the potentials or threats of a Monetary Union in Africa.
Suppose that nominal interest income is taxed at a rate of 30%. Calculate the before-tax real interest rate and the after-tax real interest rate if the nominal interest rate is 6%
Functions of the IFC: The purpose of the IFC is to further economic development by encouraging growth of private enterprise in member-countries. The IFC, therefore: • inv
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Is there a trade-off between inflation and unemployment? The Keynesian side posits that policies can indeed be used to stimulate demand - demand-side policies - and those mar
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