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Question 1:
Discuss the alternative theories of the demand for money and their relevance in specifying a demand for money function for a small island developing economy like Mauritius.
Question 2:
(a) Highlight the main measures of money supply in the Mauritian financial sytem
(b) What are the main determinants of money supply?
Question 3:
(a) What are the main objectives of monetary policy?
(b) Explain the rationale for shifting from direct to indirect market based instruments of monetary policy with financial liberalisation.
Question 4:
Discuss the main macroeconomic and microeconomic functions of a Central Bank.
One unit of A is made up of one unit of B and one unit of C. B is made of three units of D and one unit if F. C is composed of three units of B, one unit of D, and four units of E.
Between 2007 and 2009 the U.S. economy experienced a severe recession. In an effort to stimulate the economy, the federal government passed a stimulus package. Explain the federal
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Suppose the banking system has reserve of $750000, demand deposits of $2500000 and a reserve requirement of 20%. a. if the fed now purchases $125,000 worth of govt bonds from the
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Assume that the required reserve ratio is 0.12 for deposits & there are no excess reserves. Assume that the total demand for currency is equal to 0.3 times deposits. a) If t
Question 1 What would be the effect of an increase in Australia's net exports on the aggregate demand curve? Would an increase in net exports affect the RBA's monetary policy
brifly explian
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