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Furthermore it can be seen that there are interesting relationships between the remaining variables. Firstly, at the 95% significance level it can be seen that interest rates Granger cause exchange rates. This complies with the relevant theory as if domestic interest rates rise there will be a subsequent increase demand for domestic currency. The relationship between inflation and interest rates is also shown in Table 4.3, with both variables Granger causing each other.
In summary, this section has found that oil prices Granger causethree key macroeconomic variables, interest rates, inflation and GDP, therefore we are able to deduce that any unit change in the price of Brent oil, will subsequently impact on these three macroeconomic variables.
Explain the concept of elasticity and describe why the supply of petrol in the short run is relatively inelastic.
Major fiscal objective of Chancellor George Osborne The major fiscal objective of Chancellor George Osborne when coming to office in May 2010 was to remove the UK's structural
compute: credit multiplier, maximum change in the money supply
nature, development and function of money.
How credit is created or the creation of credit
Describe in detail about Exchange rate systems Various countries have different exchange rate systems. The most significant characteristic of an exchange rate system is to what
Four Hertzian dipoles (oriented in the z-dir.) are placed on an x-y plane with spacing (d=λ o /2) between them as shown in figure. a) Derive the array factor for this setup b
suppose c=a+by and investmentI is given.assuming mpc=.80 and I=50,find static and dynamic moel question #Minimum 100 words accepted#
is/lm curve
calculate, a.the total revenue b.the average revenue c.the marginal revenue price 5 4 3 2 1 0 quantity 0 1 2 3 4 5.
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