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General and Selective Credit Control
These are imposed with the full apparatus of the law or informally using specific instructions to banks and other institutions. For instance, the central bank can dictate a ceiling value to the amount of deposits the bank can create. This is more effective in controlling bank lending than the cash and liquidity ratio. It can also encourage banks to lend more to a certain sector of the economy (e.g. agriculture) than in another (estate building). Selective controls are especially useful in less developed investment away from less important sectors such as the construction of buildings, the commercial sector, or speculative purchase of land, towards more important areas.
isoquant and its properties
Contributions of economic theory to business economics According to Baumol, there are 3 key contributions of economic theory to business economics. 1. Practice of building
Suppose that Betsy's utility function is given by the equation U=Y0.3 where Y is calculated in thousands of dollars. Betsy's present job pays her $20,000 (Y=20) per year and she ca
Pricing Methods
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Marginal Revenue Marginal revenue is the additional revenue an organization receives resulting from the sale of one more item of output. Marginal revenue is calculated by takin
Open Economy None of the three economies considered so far are engaged in trade with Foreign Countries. Such economies are often referred to as Closed Economies. In contrast
STABEX The STABEX scheme was designed to stabilize earnings from exports of the African, Caribbean and Pacific (ACP) countries to the Community. It covered seventeen agricult
Explain the theory of production, Managerial Economics Explain the Theory of Production
Blowing Safety Co. P/L manufactures safety parachutes for the airline industry. These are sold directly to the airline companies. Management expects to manufacture and sell around
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