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Explain how getting right price affected the market for promoting development.
Getting prices right implies:
• Abolishing price controls as well as subsides on fundamentals. Higher prices which deny the very poor access to essentials as like clean water and electricity.
• Privatisation which can result into potential windfall profits to wealthy domestic as well as foreign speculators
• Deregulation which weakens the rules which defend consumers and workers from exploitation and causes environmental through unchecked negative externalities damage.
Question 1: (a) "Money demand is inversely related to interest rates and is stable over time." Discuss the theoretical and empirical validity of this statement. (i) Analyse
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factors that affects sthe volume of production in economy
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