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Preference to Non-debt Creating Capital Flows:
The most important element of strategy has been the paradigm shift in the attitude towards inflow of capital from abroad. Capital inflow from abroad was treated more generally as a device to finance CAD. Now non-debt creating capital inflows, specially FDI, are being encouraged on account of their positive impact both in terms of technology and the stabilising role in external sustainability. The policy has, therefore, been to gradually liberalise capital account. ? Recognising that liberalisation of capital account needs to be treated as a continuous process, the approach is based on a careful and continuous monitoring of certain preconditions/signposts such as monetary and fiscal discipline, exchange rates, structural reforms, etc. ? Stabilisation and strengthening strict fiscal and monetary discipline to control aggregate demand. Monetary policy aimed at slowing down the growth of money supply.
Define the Production Possibilities Curve and explain the basic economics concepts using the PPC. Explain the factors tht shift the PPC outwards
An increase in the scale means that all inputs or factors are increased in a given proportion. Increase in the scale thus occurs when all factors or inputs are increased keeping fa
leat cost factor combination
Tc and TVC curves have an inverted s-shape
Solve equation P=200-Qs and Qs=4.5p +5
Externalities: Many economic activities have collateral effects (at times positive, but more often negative) on other people who aren't directly involved in that activity. Illustra
COBWEB MODEL: Concept of dynamic stability: A market equilibrium is said to dynamically stable only when disequilibrium price and quantity move and over time reach to any eq
Shares: Financial assets that represent ownership of a small proportion of total equity (or net wealth) of a corporation. Shares can be sold and bought on a stock market. Slaver
During the 1990s, technological advance reduced the cost of computer chips. Explain, with the use supply and demand diagrams, how the following markets are affected in terms of pr
What does economic theory contribute to managerial economics? Explain
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