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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.
Note and explain the identification problem associated with the following statement. "During Bill Clinton's presidency the US economy saw unusually strong economic growth; thus, Mr
Sustainability of Current Account Deficit: Theoretically speaking, a current account deficit can be sustained as long as the growth rate of national income exceeds the rate of
Assume an industry with one upstream and one downstream monopoly. The upstream monopoly produces Q , which is sold solely to the downstream monopoly. The downstream monopoly faces
c) Explain why perfectly competitive markets lead to an allocatively efficient allocation of resources in the long run
The price of gasoline has recently come down as has the quantity. Show graphically and explain what might have caused this.
Question 1 Discuss the relationship between microeconomics and macroeconomics Question 2 What do you understand production method? What precaution should be taken while
how is it calculated
Evaluating Legal Prices: Collect information regarding the minimum wage. State the procedure of this legal price, assess its impact on the market for labor, and evaluate the extent
Suppose that a grocery store buys milk for $2.10 and sells it for $2.60. If the milk gets old then the grocery store can sell their unsold milk back to their wholesaler for $0.60 (
An electrical company audit indicates that motor consumption is 4x106 kWh per year. By upgrading to high efficiency motors a 10% savings can be made. The additional cost for the mo
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