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Determine the main target of monetary policy
Since 1997 'official' main target of monetary policy has been to 'hit' inflation rate target set by government. Though since the onset of recession in 2008 Bank of England has set interest rates to stimulate aggregate demand. Low interest rates try to achieve this objective in 2 ways. First, households with large mortgages have been able to take advantage of 0.5% rate and pay off debt. Second, saving has become unattractive and so, in theory at least, people decide to consume instead of saving.
Q. Describe Exports and imports in AS-AD model? Exports and imports. This is more difficult to justify owing to exchange rate. Suppose that we have a flexible exchange rate a
Q. Show factors that govern the Price Elasticity of Demand? a. The number and closeness of the substitutes- The more and the better the substitutes, the grater is the Price Ela
• Select Facultyapproved publicly traded firm (prefer from Middle East or international unique company) which allows access to it financial information (inform me by email which co
Foreign exchange risk is the level of uncertainty that a company must handle for changes in foreign exchange rates that will unfavourably affect the money the company receives for
How to calculate credit multiplier with the value of deposit, reserves requirement and loan
what would be effect of fiscal and monetry policy on price and output level if meges are flexible and rigied?
State about the Other interest rates There are many other interest rates in a society. For example, you will earn interest when you deposit money in a bank account and you will
Given the above trade between the two countries, explain the trade effects on product prices, and factor incomes. Why do these effects occur?
multiplier static and dynamic
different between money multplier vs credit multplier ?
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