Margin requirements for deflationary gap
Elucidate the role of margin requirements for correcting deflationary gap.
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Deflationary gap terms to a situation whenever at full employment level of income AD falls/downs short of AS. It is termed as deficient demand.
Margin requirements terms to the margin on the security given by the borrower. Whenever margin is lower, the borrowing capacity of the borrower is higher. If central bank lowers the margin then the borrowing capacity of the borrowers increase. This increase AD.
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Can someone please help me in finding out the accurate answer from the following question. For a monopolist in a product market, the value of marginal product of the labor: (i) Equivalents the marginal revenue product of the labor
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