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Q. Role of Monetary Policy?
Monetary Policy: Monetary policy reflects the use by government and government agencies (mainly the central bank) of interest rate adjustments and other levers (like various banking regulations) to influence the flow of new credit into economy, and thus rate of economic growth and job-creation. A ‘tight' monetary policy tries to reduce growth of new credit (through higher interest rates); a ‘loose' monetary policy tries to stimulate more credit creation and hence growth.
What simplifying assumptions does the traditional macroeconomic model make (in addition to those made in the NIPA)? The simplifying assumptions are: 1) The household and i
1. Consider the consumption decisions of R.B. Turbo, a new student at Teachers College, Columbia University. Ms. Turbo has only available $1,000 in monthly income to spend on food
argument against in favour of traditonel theory profit maximisation
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Why a high level of labor force growth is correlated A high level of labor force growth is correlated--even though less powerfully--with a low level of output per worker. The a
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subsitution effect dominate tha income effect in which good case?
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