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Question 1:
i) Is there a stable and inverse link between unemployment and inflation?
ii) The government announces that expansionary policies will be enacted in a view to reduce unemployment. Use Friedman's adaptive expectation framework to show the effects of such policies in both the short run and long run.
Question 2:
i) Describe why the government should make provision of social goods. Briefly describe these goods.
ii) What do you meant by negative externalities? Examine the different means that a government can use to tackle these problems.
Question 3:
Write on any two of the following. (Each part carries equal marks).
i) Public sector borrowing requirement ii) International fiscal coordination. iii) Direct versus Indirect taxes.
Q. Determining Optimum Liquid Balance? Liquid balance (balance of cash and marketable securities) must be maintained at the optimum level. It is the level which gives the minim
SEC is the Regulatory body for investor protection in the United States which is created through the Securities Exchange Act of 1934.
What is the difference between economic profit and producer surplus? When economic profit is the difference among total revenue and total cost, producer surplus is the variatio
Evergreen Company Ltd has been promoted by promoters. They are trying to decide how the company could be financed. There are three choices: i. Issue Rs 500,000 in Equity shares
Explain the significance of the term additional funds needed. While the pro forma balance sheet is completed, total assets and total liabilities and equity will hardly match.
The securing of the working capital needed for the support of raises in accounts receivable and inventory related with an organizations initial expansion time.
NPV and Other Criteria Waddington International Inc. has $20 million to invest. It is considering whether to build a new factory in Western Canada. The land and the building wil
How exchange of principal and interest in one currency? Expalin
RWE Enterprises is a small manufacturer in Adelaide South Australia, feed suppliments for cattle. New production line NPV, Payback period and discounted payback period
A callable bond is similar to an Option-free bond with a call option from the bondholder. It can be thought of as the sale of a call option by the investor
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