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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.
b) Discuss the validity in Zimbabwe of the grounds on which the profit maximising model of the firm has been defended.
Question : i) Consider a discriminating monopolist is selling a product in two separate markets in which demand functions are: P 1 = 6 - Q 1 P 2 = 18 - 2Q 2 The mono
Peanut butter monopolist Calvé supplies peanut butter to Albert Heijn in an isolated village. The supermarket is a monopolist in the village. Demand for peanut butter is given by:
Fixed Costs (FC) These are costs which do not vary with the level of production i.e. they are fixed at all levels of production. They are associated with fixed factors of p
definition of optimal use of veriable input
Explain factors determining elasticity of demand.
Open Market Operations The Central Bank holds government securities. It can sell some of these, or buy more, on the open market, buying or selling through a stock exchange or
Q. Time Factor for Determinants of Demand? Price-elasticity of demand depends moreover on the time that consumers take to adjust to a new price: longer the time taken, greater
Question 1: (a) Describe how asymmetric information influences the price system and resource allocation. Provide examples to support your answer. (b) Managerial decision-ma
Cross-elasticity is the measure of responsiveness of demand for a commodity to the changes in price of its substitutes and complementary goods. For example, cross-elasticity of dem
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