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Describe clearly how the interest rate is determined, (a) Describe clearly ...

(a) Describe clearly how the interest rate is determined in: (i) Loanable Funds Framework; and (ii) Liquidity Preference Framework. (b) According to Liquidity preference

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Determinants of Private Demand for Education Rates of return on investment in education is only one of the factors determining the demand for private investment though it is

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When somebody wearing muddy shoes rides a public bus, he imposes a negative externality on other riders (passengers get some mud rubbed off on them, and the shoes look ugly). If a

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The government has undertaken a highway bridge project that was originally projected to cost $2 million and provide benefits of $2.5 million.  Unfortunately, the costs have been mu

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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 o

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explain consumer equilibrium diagrammatically as well mathematically by using necessary and sufficient conditions

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Demand Pull Inflation: It describes a sustained increase in the general price level that is caused by a permanent increase in nominal aggregate demand. Simply, is can be view

Explain how the price system eliminates a surplus, Explain how the price sy...

Explain how the price system eliminates a surplus. The meaning of surplus is that quantity demanded is less as compared to the quantity supplied.  This will lead to downward pr

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