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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.
If 5000 units are sold and income increases by 20% with an income elastiticy of +2, what will the number of sales units be after the increase
During the 1990s, technological advance reduced the cost of computer chips. Explain, with the use of supply and demand diagrams, how the following markets are affected in terms of
why does the price level not enter desire consumption, investment and net exports of the desired aggregate expenditure function in the keynesian cross model
Draw the supply and demand graph for pizza, then answer the questions below. SUPPLY OF AND DEMAND FOR PIZZA Quantity Supplied Price Quantity Demanded 300 $15.00 100 240 12.00 180 1
Suppose you have $10,000 and wish to purchase an annuity that pays you a fixed dollar amount every month. How much would you receive each month if the annuity rate is 1% and you in
Some countries that supply oil to petrol manufacturers are located in or near the Middle East, others are not located in or near the Middle East. (i) Does the war benefit or har
Assume the economy has a GDP of $11,500 billion. The unemployment rate is at 7.3% and has been slowly rising for the last 6 months. Inflation was at 2.3% one year ago but has sin
There are 4 main types of market economies. They are also called as Economic Systems. The four are Free Market, Mixed Market, Traditional and Command Economy
Explain about the circular-flow of economic activities. Circular-Flow of Economic Activities: Economic Agents: a. Households b. Firms Where they interact:
The director of admissions at Kinuza University in Nova Scotia estimated the distribution of student admissions for the fall semester on the basis of past experience. What is the e
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