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.
geomeric method to measure elasticity of supply
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When it is feasible for total revenue to exceed variable costs, in that case a monopolist which does not price discriminate maximizes profits or minimizes losses from producing the output where marginal revenu
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