rrCurent CRR 4.75 What is CRR? or What is CRR Ratio or CRR Rate : CRR means Cash Reserve Ratio. Banks in India are required to hold a certain proportion of their deposits in the form of cash. However, actually Banks don’t hold these as cash with themselves, but deposit such case with Reserve Bank of India (RBI) / currency chests, which is considered as equivlanet to holding cash with RBI. This minimum ratio (that is the part of the total deposits to be held as cash) is stipulated
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Ans a: Qh = 205.2 – 200*Ph + 100*Pc + 0.023*A + 0.0005*I Interpret the coefficients in the estimated regression. The quanitity of hamburgers purchased is defined by the demand curve produced by the estimated regression equation The Y axis intercept ( The point where the demand curve crosses the y-axis) of 205.2 may or may not have any meaning or value in this analysis The coefficient of the hamburger’s price affects the quantity of the hamburger in a negative manner. An increase of one unit
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CSC CHAPTER 5 * Fiscal policy affects the economy in the following way: * Its spending and/or direct transfers to citizens * Taxes of various types, including direct income, sales, payroll, capital, and property taxes * Deficits, which tend to stimulate the economy, while falling deficits (or surpluses) generally do the opposite * Automatic stabilizers, which automatically move counter to the business cycle (unemployment insurance payments increase as unemployment rises, while
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SECTION B Answer ALL Questions in this sections in the spaces provided. Be brief and precise. Question 1: Refer to Figure 6 below Figure 6 [pic] a. Equilibrium price and quantity before trade would be ▪ Price = $14; ▪ Quantity = 600 b. The price and domestic quantity demanded after trade would be ▪ Price = $ 18; ▪ Domestic quantity demanded = 400 c. After trade domestic production would be ▪ Domestic production = 800
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price of wool, the Australian Wool Council (AWC) implemented a minimum price floor scheme to protect the Australian wool producers. The price floor for wool began in 1974 and ended in 1991 as “there was no plan to cope with the sharp reversal in the supply-demand situation.” (Clancy, The reason wool was knocked to the floor, 2011). 1.2 Price floor Price floor refers to the minimum price level in which a commodity can be sold in the market (Hubbard, Garnet, Lewis, & O'brien, 2010). It is usually illegal
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and services are freely set based on the laws of supply and demand which are unfettered by interference from a government or other outside bodies. A market economy at its basic is an economy run entirely by the market itself (McGuigan 2003:1). In contrast to a market economy is one which follows the Keynesian principals which is an economic theory which advocates government intervention, or demand side management of economy by increasing money supply or by actually buying things on the market itself
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the law of supply and the law of demand. Supply and demand is perhaps one of the most fundamental concepts of economics and it is the backbone of a market economy (Heakal, 2012). Without demand for a good, there would be no need for the supply of the good. Supply and demand is based on how much people are willing to spend to obtain a good. With higher demand, it would drive the price of a good up, which would prompt suppliers to produce more goods. Suppliers need to keep up the supply inventory to
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ABSTRACT This paper compiles information from different sources, in reference to demand for used car versus new cars. The supply and demand for used car continue to increase. We see a trend from 1995 to 1999 and again from 2009-2010 (2011 not release yet) for used car sales increased. Increase in demand due to high gas prices and the short supply of Japanese small new cars. We find a significant demand response, as nearly half of the decline in sales of U.S. manufacturers from 2002-2010 was due
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Date: 7-30-2012 To: Victor From: Subject: Project Part 1 Voter Victor. The United States is said to have a mixed economy. This is because of privately owned businesses and government both plays important roles. The American free enterprise system is based solely on private ownership. The American economy is indeed a consumer based and a capital based economy. A mixed economy is an economic system in which both the state and the private sector direct the economy, reflecting the characteristics
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function as graphed in D & S diagrams Supply: Quantity demanded is a positive function of the price charged plus a function of other factors Examples of mathematical forms for supply functions Qs = as + bsP + csX Linear (ie straight line) with X as another factor (eg sales tax) Qs = asP-bsXcs Curved version lnQs = lnas – bslnP + cslnX Curved version in log form for easy regression estimation Supply Curve: Refers to simpler version of the supply function graphed. It is usually graphed
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