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THE MONETARY ACCOUNT
Also called official financing, this comprises the financial transactions of the government (handled by the central bank) needed to offset any net outflow of money on the current and capital accounts i.e. total currency flow. It comprises of:
i. Use of the foreign exchange reserves, i.e. increasing or decreasing them.
ii. Borrowing from the IMF i.e. borrowing or paying back.
iii. Central bank transactions with other countries central banks i.e. borrowing or lending.
Shifts in the supply curve Shifts in the supply curve are brought about by changes in factors other than the price of the commodity. A shift in supply is indicated by an entir
Jeremy is an economics learner who loves hamburgers. He could eat any number of them for dinner, but he gets a really bad stomach ache after eating a certain amount. In fact, his u
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structure of managerial economics
OBJECTIVES OF GOVERNMENT Government policies are required in market economies to achieve certain goals. There are broadly two types of government policies viz; Microeco
Usually, elasticity of a demand curve throughout its length isn't the same (Fig. below). It varies between 0 and ∞, or in other words, 0 ≤ e p ≥ ∞ In some cases, though, the
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what is traditional theory of cost/explain with suitable diagram
A firm in a perfectly competitive market invents a new situation of production that lowers its marginal costs. What happens to its output? What happens to the price it charges?
Average Revenue (AR) This is the revenue per unit of the commodity sold. It is obtained by dividing Total Revenue by total quantity sold. For a firm in a perfectly competiti
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