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Assume a sudden collapse in the stock exchange of an economy is expected to reduce the future profitability of the firms of the economy.
Construct loanable funds market in a closed economy & discuss the effect of it on the rate of interest & investment. Construct loanable funds market in the context of an open economy by assuming that the home country is a small open economy.
Discuss the effect of an enhancing in the govt. budget deficit in the home country.
In this context recognize the twin deficit.
Q. Show the Changes in the exchange rate? Assume that United States is our home country and the current euro exchange rate in direct notation is SD = 1.5 (euro/USD). In indirec
Q. What is the basic function of Central banks? A central bank is a public authority which is responsible for monetary policy for a country or a group of countries. Two signifi
(1) Based on the article, describe as best you can: (i) the reference group for the cost benefit analysis, (ii) the purpose of the study (i.e., what is the "project" in this
Equilibrium in the money market In the IS-LM-model, we have equilibrium in the money market when MD(Y, R) = MS This is the equation
Economic functions of money - A medium of exchange This is its most important role. Without money we would live in a barter economy where we would have to trade goods and
Suppose that in the United States a car can be produced with 200 labor hours, while a ton of rice requires 20 labor hours. In Japan, it takes 150 labor hours to make a car and 50 l
What is top marginal rate of taxation?
Answer the following questions for a hypothetical economy whose situation in year 1 was as follows: M = $800 billion; long-term annual growth of real GDP = 3%; V = 4. The bankin
what effect would a rise in the velocity of money have on output, employment and price level?
distinguish between state and dynamic multiplier and illusrate balanc budget theorm in hindi
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