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Government Budget Deficits
Governments have been traditionally spending more what they could earn by way of taxes and sale of economic goods and services produced by them. The resultant deficit (variously known as budget deficit or fiscal deficit) could be financed by mobilization of create more jobs and thereby help the economy generate more income. But the way of financing government expenditure has many other implications, many of these may prove adverse: (i) budget deficit may prove inflationary, especially if the economy fails to generate more output; (ii) a large part of domestic saving may be cornered by the government; adequate saving may not be available for private investment; and (iii) this may put pressures on market rates of interest. Macroecomics has paying more attention to these issues in recent years.Interest RatesIn the globalising world of today, interest rates have come to occupy centre stage. Globalisation implies cut-throat competition. Successful globalisation requires that all the actors work to their best efficiency; none of them would like be competed out because they have to pay high rates of interest. Therefore, how to keep interest rates low is the issue that has attracted the attention of economists.Balance of PaymentsAgain, in globalising, increase free market economies, goods, services and capital are flowing across national borders as never before. The cross-border transactions in goods. Services and capital give rise to payments and receipts in foreign exchange. Exchange rates, wherever they are left to be determined by market forces, exert their own influence on international economic relations. Therefore, a proper analysis of balance of payments has been a core issue in macroeconomics.
Risk Neutral - A person is a risk neutral if they show no preference between certain, and an uncertain income with the same expected value.
The demand functions for two related commodities are expressed as follows Q 1 = (12P 2 3/4 ) / (P 1 1/2 ) Q 2 = (24P 1 2 ) / (P 2 3/5 ) Where Q 1 and Q 2 are d
In theory, we know that a monopolist basis its price directly off of the demand curve, but in practice a monopolist cannot ''see'' the demand curve. Explain how a monopolist might
Hotel rooms go for $100/room and sell 1000/day; if taxed at $10/room and rate goes to $108 and 900 rooms are sold, what''s the tax revenue and dead weight loss?
what are the main properties and assumptions of indifference curve
Marketing Economies: These are derived from the bulk purchasing of inputs and bulk distribution of outputs. A large firm is able to buy its raw materials in larger quantities
project work
MRP Technique - Estimating the Level of Output for the Target Year Taking into account several parameters of economic growth such as past trends, present as well as proposed
Point Elasticity of Demand - For large price changes (such as 20%), value of elasticity will depend upon where price and quantity lies on demand curve. - Point elasticity me
What are economies of scale and diseconomies of scale? In economics, returns to scale and economies of scale are terms that are related and sometimes incorrectly used intercha
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