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Question 1:
(a) Discuss the relationship that exists between financial capital and physical capital.
(b) Analyse how a stock-market crash would drive an economy into a recession.
(c) Examine and evaluate the factors that determine the demand for a firm's capital.
Question 2:
(a) Under what circumstances may the value of the Rupee depreciate?
(b) What implications would a depreciation of the Rupee have on the profitability of an organisation involved in foreign trade?
(c) Evaluate the policies that could be used to arrest a continuing depreciation of the Rupee.
Evaluation of perfect competition arguing the effect on stakeholders, priorities and SR/LR
Define the macroeconomic stability in market for promoting development. Macroeconomic stability implies that: • Tight fiscal policy that is balanced government budgets and d
Why are markets considered as unsuitable for promoting development? The process of establishing a market system frequently includes radical reform which produces both winners
Distribution of benefits for transferring drivers to transit during a congested morning commute A residential suburb has N = 30,000 commuters who drive alone to jobs in a cen
(a) Describe and discuss the Structure Conduct Performance framework (b) The hypotheses of interest in the Structure Conduct Performance framework are as follows: Hypothesi
Is the balance of payments a problem? A persistent balance of payments shortage is bad when used to finance consumption, but good when financing imports of suitable capital wh
Why is debt management difficult in Less Developed Countries? One of the biggest challenges facing Less Developed Countries debt management is making sure $ interest payments c
What is the function of multinational companies into the promotion of development? A multinational or transnational (TNCs) company operates within two or more countries across
QUESTION 1 (a) Compare and contrast the main theories of a demand for money. (b) Specify a money demand function for a small island economy like Mauritius. QUESTION 2
In a model where a continuum of individuals have preferences for consumption and leisure as follows w i = c i + ln(x i ) and individuals differ in their labour endowments e
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