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.
Hello, I did attach case study on Microeconomics. Regards,
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Supply is unitarily price elastic for all quantities and prices upon: (i) supply curve S1. (ii) supply curve S2. (iii) supply curve S3. (iv) supply curve S4. (v) supply curve S5. Discover Q & A Leading Solution Library Avail More Than 1423595 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads No hassle, Instant Access Start Discovering 18,76,764 1950066 Asked 3,689 Active Tutors 1423595 Questions Answered Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!! Submit Assignment
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