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Problem:
(a) Define money and briefly explain its core functions.
(b) Explain the relationship between interest rate and price of bonds, illustrate using example.
(c) Distinguish between the loanable funds model and the liquidity preference model.
(d) " The Monetary Policy Committee of the Bank of Mauritius cuts the Key Repo Rate by 50 basis points" (Bank of Mauritius, 19th March 2012)
Discuss the impacts of the above on the Mauritian economy.
An economy can produce a maximum of either 28 million tons of wheat or 7,000 automobiles, or various intermediate quantities, as depicted in the table below:
determinate equilibrium price and quantity. if Qd=7-1/2p AND Qs=1/4P-1/2
Positive versus Normative Economics Positive Economics Positive economics considers with the predictions or observations of the particulars of economic life. For instance:
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In the case of a tax abolition on food staples, what are the short run and long run effects?
what is fixed and variable inputs with more explanation
Market equilibrium happens where supply equals demand (supply curve intersects demand curve). An equilibrium implies that there is no force that will cause further changes in pri
How equilibrium is achieved under monopoly
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