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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.
Assume that in the market there exist two types of workers where the principle cannot distinguish types. The two types only differ with respect to the disutility of effort. The dis
LANTHENOIDS
Explain the factors which would affect the price of a good. As there is a very long list of determinants, the basic issue is for the student to describe and illustrate how shif
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Identify the four institutional requirements of markets. The four institutional needs of markets are: Pprivate property, Social institutions of trust, Good physical i
Define the Production Possibilities Curve
The demand for every productive resources is a derived demand. By derived demand it is meant that it is the output of the resource and not the resource itself for which is a deman
Tuan lives in a town with only one movie rental store. Suppose Tuan’s demand for movie rentals per month is Q = 16- 2P . The movie store currently charges $5 per movie, but is thin
What are the income and cross elasticities of demand? Why might they be useful? Explain.
explain optimal use of variable input?
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