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Q. Explain about Banking Cycle?
An economic cycle that results from cyclical changes in the attitudes of banks toward lending risk. When economic times are good, bankers become optimistic that their loans would be repaid, and therefore they expand their lending. More credit means even stronger economic times and so on. Opposite takes place when economy becomes weaker: bankers begin to fear more defaults on their loans therefore they issue fewer loans, and henceforth economy weakens even further.
Consider an economy with three states. The following set of stocks is traded: x 1 =(2,2,0) x 2 =(1,0,3) x 3 =(0,2,4). The t=0 prices of these stocks are given as follow
CHARACTERISTICS OF ECONOMIC INFRASTRUCTURE: Natural monopoly is the situation where the provision of a good or a service has economies of scale, which are realised most when a
steps for law of coservation of mass
Illustrate and explain the changing demand for big mac using the indifference curve and budget line.
1. The two-way ANOVA, non-orthogonal case, has been a vexing problem for ANOVA researchers for many years. Please answer the following questions concerning the two-way non-orthogo
Functions of the ADB: ADB finances principally specific projects in the region. It may make loans to or invest in the projects concerned. It may also guarantee loans granted t
Time Value of Money The time value of money is the price or value placed on time. It is commonly thought of as the opportunity cost related with a particular investment. Money
Economies and Diseconomies of Scale -Economies of Scale Increase in the output is greater than increase in the inputs. -Diseconomies of Scale Increase in the
Cost in the Short Run Marginal Cost (or MC) is the cost of expanding output by one unit. As fixed costs have no impact on marginal cost, it can be given as: Average Total
What is the explanation for SAC to be tangent to LAC?(In other words, why must both be tangent to each other)?
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