Money-just another good
‘What occurs in the money market when there is a raise in income?’
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Making an understanding of money market. The exercise begins by encouraging students to think of the money market in a customary demand-supply framework. This covers aspects of the money market which cause students troubles: stocks/flows, real/nominal and the ‘price’ of money. This goes on to consider several differences in the demand for money provided Keynesian and Monetarist views.
Determine the value of MPC whenever MPS is zero? Answer: Whenever MPS = 0, MPC = 1 – 0 = 1.
In poor countries people spend a big percentage of their income so that APC and MPC are high. Yet, the value of multiplier is low. Explain why?
Define the "full-employment" or "natural" rate of unemployment and give its approximate percentage rate as economists currently define it.
What points out revenue deficit? Answer: Revenue deficits are stated as the surplus of revenue receipts. Revenue Deficit = Revenue Expenditure - Revenue Recei
What is meant by the term business cycle as described by economists?
What is the basic difference between Market Supply and Individual Supply?
Definition of shortage: It is a condition in which quantity demanded is more than the quantity supplied. The sellers will respond to the shortage by increasing the price of the good till the market reaches the equi
Describe why businessmen mostly wish to open current account in bank?
As longer time periods are taken and a bigger range of adjustments (or substitutions) become obtainable, then demand curves tend to become: (1) flatter, as supply curves become steeper. (2) Steeper as supply curves become flatter. (3) Flatter, and therefore do supply
Whenever longer periods are considered and hence bigger ranges of adjustments (that is, substitutions) become probable, demand curves tend to become: (i) Flatter, and therefore do supply curves. (ii) Flatter, as supply curves become steeper. (iii) Ste
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