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Problem:
(a) Define money and briefly explain its core functions.
(b) Explain the relationship between interest rate and price of bonds, illustrate using example.
(c) Distinguish between the loanable funds model and the liquidity preference model.
(d) " The Monetary Policy Committee of the Bank of Mauritius cuts the Key Repo Rate by 50 basis points" (Bank of Mauritius, 19th March 2012)
Discuss the impacts of the above on the Mauritian economy.
What are the advantages of leaving the allocation of a countrys resources to the price mechanism? Ans) The main conditions needed are: 1. Either a finite number of agents or pr
Marginal Product (MP) of a Factor: From the above mentioned production function, immediately we can study the effect on total output when there is a variation in labour utlili
What are the types of demand
explain the concept of producers'' equilibrium
Partial Input Elasticity of Output: This is a short-run concept which deals with the variability of only one factor keeping the others constant. There are three kinds of retu
explain 6 factors that determine volume of production
(i) When the demand function is 2Q - 24 + 3P = 0, find the marginal revenue when Q=3. (ii) Given the demand function 0.1Q - 10 +0.2P + 0.02P2 =0, calculate the price elasticity of
stackelberg,bertnart,cournet about oligopoly
Costs: If raw materials, machines and other things required for production could be made available freely then the study of the theory of the production and indeed, the study of
Define the Policies of Education Universal education--particularly universal education of girls--pays a two-fold benefit. Investments are more likely to be productive with a be
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