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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.
The Transmission Mechanism The mechanism by which the changes in monetary policy affect aggregate demand is called 'transmission mechanism'. Two stages in transmission mechanis
Usually the government is very good at wasting money and resources so less spending, by the government helps the economy as those resources are allocated in areas that are more wel
how large money is supply (M1)
Why do some countries have a high real per capita income? High standard of living within the industrialized nations consider to be largely because of the high productivity of
is/lm curve
A seafood restaurant in a beach resort town has a fixed (unavoidable) cost of $1,000 per month and variable (avoidable) costs of another $1,000 per month. Its total revenues over t
Butthole Industries is buying out Avengers, Inc. Butthole and Avengers both have market capitalizations equal to their fair value or the present value of their net cash flows. Bu
Explain whether the following statements are true or false: a) The long run aggregate supply curve is vertical because economic forces do not affect long run aggregate supply.
factors affecting national income
RELATIONSHIP WITH 8 VARIANTS OF NATIONAL PRODUCT AGGREGATES We have shown the distinction between national product at market prices and national product at factor cost, based
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