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Interest rate sensitivity can also be understood from another perspective. The total cost of a commodity is not just its price, but also what must be paid to borrow money to purchase that item. With modern views of immediate gratification, it is rare for someone to save to purchase a house, or any other big ticket item, what is more common is to borrow the money, buy the item, and make instalment payments. Thus the interest charges are a part of the total cost of acquiring that big ticket item - as consumer sensitivity to interest rates when buying a house or a car.
What are the advantages and disadvantages of monopsony?
discuss the implications of various market structures(competitive and non-competitive)for price determination
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How to prepare an assignment of Monopoly in economics#Minimum 100 words accepted#
FUTURE DIRECTIONS: It is often said that the difficult things are the beautiful things, and if they are as vital for healthy national development as an economy, society and po
1f
explain how the keynesian cross shows that the economy is susceptible to self-fulfilling prophesies, either positive or negative
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