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Liquidity and the multiple contraction of deposits
Many of the instruments of monetary policy depend upon limiting liquidity, which has a multiple effect upon bank' deposits through their liquidity ratios. If however, banks keep surplus liquidity this will protect them against such measures as open market operations and special deposits.
The efficacy of open-market sales is also affected by who purchases the securities. For open-market sales to be effective it is necessary that sales to be the general public, if the securities are bought by the banks they will have little effect upon their liquidity since most of them count as liquid assets.
Individual firm and market supply curves The quantities and prices in the supply schedule can be plotted on a graph. Such a graph is called the firm supply curve. A fir
State the difficulties in the measurement of profit.
What will be the table of total cost function?
Disadvantages of Mixed Economy Large monopolies can still exist in the private sector, and so competition does not really take place There is likely to be a lot of bureaucr
Q. Show the Isoquant touching axis? Isoquants do not intersect: By definition isoquants such as indifference curves, can never cut each other. If they cut each other it will
a. Explain why the demand for a particular brand is more elastic than the demand for all cigarettes. If Lucky Strike raised its price by 1% in 1918, was the price elast
MONOPOLISTIC PRACTICES The following practices may be said to characterize monopolies. Exclusive dealing to supply and collective boycott Producers agree to supply onl
(a) Define and explain, using diagrams, consumers' surplus; producers' surplus and total surplus that a society can derive from production and consumption of a good at a particu
Williamson, Wachter and Harris (1975) suggest promotion incentives within the firm as a substitute to morale-damaging monitoring, where promotion is based on objectively measurable
free trade promotes a mutually profitable regional division of labour greatly enhances the potential real national product ofall nations and makes possible higher standards of livi
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