a) What is Walras Law? Explain using appropriate equations.( 10 marks) b) What is the justification...

a) What is Walras Law? Explain using appropriate equations.( 10 marks)

b) What is the justification for bb curve (bond market function) that is positively sloped and rather elastic? ( 15 marks)

c) Despite the disadvantages, why is fixed exchange rate preferred ( 10 marks)

Solutions

Expert Solution

Rahul Sunny answered 1 year ago

Next > < Previous

Related Solutions

What are the policy implications of Walras law?

2. a. With appropriate equations and notations, derive the money multiplier (M1). (5 marks) b) AMALAND...

2. a. With appropriate equations and notations, derive the money multiplier (M1). b) AMALAND is a country with a required reserve ratio of 10%. Assume that the banking system has an excess reserves equal to 4 billion. Further, the currency in circulation equals 450 billion, and the total amount of checkable deposits equals 900 billion. Based on these numbers, calculate (i) required reserves held by the banking system (ii) total reserves held by the banking system, (iii) monetary base (iv)...

A. Identify the four (4) key terms in Insurance Law. (4 marks) B. Briefly explain what...

A. Identify the four (4) key terms in Insurance Law. B. Briefly explain what indemnity means in Insurance Law. C. Briefly explain what the ‘doctrine of subrogation’ means and discuss its effect on the parties to an insurance contract. (Word limit: Minimum of 200 words. Maximum of 300 words)

a) Briefly explain what the delta of an option signifies. (10 marks) b) “Once an investor...

a) Briefly explain what the delta of an option signifies. b) “Once an investor sets the total delta of a portfolio of currency options to zero, she can forget about its exposure to fluctuations in the spot price of the underlying currency. She will be protected from losses since her portfolio started out being delta-neutral.” Do you agree with this statement? Use examples if necessary.

Answer all parts (a), (b), and (c) of this question. [10 marks] Illustrate and explain what...

Answer all parts (a), (b), and (c) of this question. [10 marks] Illustrate and explain what is meant by a “double marginalisation problem” in technology licensing. [20 marks] A single (monopoly) upstream licensor proposes to supply an input under license to a single (monopoly) downstream licensee. This input has the effect of reducing the marginal cost of production of the downstream firm. The licensor proposes a contract whereby the licensee pays an up-front fixed fee but no recurrent royalty for...

(a) List and explain the properties of indifference curves.[10 marks] (b) Explain with the aid of...

(a) List and explain the properties of indifference curves.[10 marks] (b) Explain with the aid of a diagram the income and substitution effects and use the concepts to describe what happens when the price of a product decreases. [10 marks] (a) Carefully explain what is meant by explicit; implicit; and sunk costs. How are they used to calculate accounting profit and economic profit? [5 marks] (b) Explain the relationship between total product, marginal product, and average product. [5marks] (c) Explain...

11. (10 marks) Supply and Demand - Application of Simultaneous Equations (a) (7 marks) Find the...

11. Supply and Demand - Application of Simultaneous Equations (a) Find the equilibrium price and quantity in each of the following markets: (i) Qd = 6 − 2p, Qs = 3 + p; (ii) Qd = 10 – 5/2 p, Qs = 3 + p; (iii) Qd = 1 − p, Qs = 3 + p. Comment on the situation in market (iii). (b) What would be the effect of a purchase/sales tax of 1 cent per item in (ii)...

Explain the advantages of using Database Management System (DBMS) [10 marks]

Answer all parts (a), (b), and (c) of this question. [10 marks] Define and explain the...

Answer all parts (a), (b), and (c) of this question. [10 marks] Define and explain the concepts of moral hazard and adverse selection. Illustrate each concept with two examples: one in the context of new technology sale, the other in the context of new technology funding. [20 marks] Explain why asymmetric information may cause a market failure in the markets for selling new technology and the market for funding new technological development. [20 marks] Propose and defend a solution to...

a) Describe the procedure of using GNSS for setting out a horizontal alignment. (10 marks) b)...

a) Describe the procedure of using GNSS for setting out a horizontal alignment. b) Total station and GNSS can be used in setting out. Discuss and compare the total station method with the GNSS method in setting out.

Subjects