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Answer True or False, then justify your response with practical economic examples:
a. The introduction of mobile money transfers and ATMs has reduced the demand for money tending to lower interest rates. (5 marks)
b. Open Market Operations are more effective in a developing country like Kenya when compared with the Bank Rate Policy. (5 marks)
c. Since Quantitative credit control instruments are more targeted and more objective, it is always advisable that they be applied at all times over the Selective instruments. (5 marks)
d. Inflation is always associated with more money chasing few goods.
examples:
a. The introduction of mobile money transfers and ATMs has reduced the demand for money tending to lower interest rates. (5 marks)
Suppose the government raises govt. expenditure by 20% in order to increase aggregate demand. Show how this policy results in the crowding out effect.
Since quantitative credit control instruments are more targeted and more objective it is always advisable that they be applied at all times over the selective instruments .true or false . explain
Given Demand Function Qd=40-2p And Supply Function 2p-Qs=20 Assume The Gov.T Increase Atax Of T Per Unit On Quantitiy Supplied And The Producer Adjust The Supply Function To Include The Tax
A) Find The Tax Rate At Which Tax Revenu Is Maximum?
B) Find The Maximum Revenu Which Can Be Obtained From A Function?
Given Demand Function Qd=40-2p And Supply Function 2p-Qs=20 Assume The Gov.T Increase Atax Of T Per Unit On Quantitiy Supplied And The Producer Adjust The Supply Function To Include The Tax
A) Find The Tax Rate At Which Tax Revenu Is Maximum?
B) Find The Maximum Revenu Which Can Be Obtained From A Function?
QD = 25 - 3P and QS = 10 + 2P, write the inverse demand function
Answer True or False, then justify your response with practical economic examples:
a. The introduction of mobile money transfers and ATMs has reduced the demand for money tending to lower interest rates. (5 marks)
b. Open Market Operations are more effective in a developing country like Kenya when compared with the Bank Rate Policy. (5 marks)
c. Since Quantitative credit control instruments are more targeted and more objective, it is always advisable that they be applied at all times over the Selective instruments. (5 marks)
d. Inflation is always associated with more money chasing few goods. (5 marks)
Do you think producers enjoy flexibility in raising the car prices? Explain it with the help of graph.
Do you think the producer enjoy flexibility to raise car prices??
