Explain how the concept of elasticity guides decisions in the Government‟s tax policy on household consumption Government tax policy on household consumption: An indirect tax has an effect of increasing the price of the product and how much of the Read More …
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Consequential economic impacts of high and rising rate of interest
Discuss some of the consequential economic impacts of high and rising rate of interest Some of the consequential economic impacts of high and rising interest rates: Increased cost of public debt servicing – redemption of treasury bills and bonds Read More …
Factors determining the rate of interest in an economy
Factors determining the rate of interest in an economy Credit Management performance standards – e.g. banks and other financial institutions. Credit management efficiency levels determine the size of nonperforming loans and bad debts, which tend to force banks and Read More …
Major differences between quantity and the Keynesian Liquidity preference theories of money demand
The Quantity Theory of Money (Theory of Exchange) looks at money largely from the supply side while Keynesian approach is from the demand perspective (the desire for people to hold their wealth in cash balances instead of interest – earning Read More …
Salient features of a Monopolistic competition market model
Bring out the salient features of a monopolistic competition market model Combination of features from both perfect competition and monopoly; this compromise between monopoly and perfect competition takes the form of many firms producing differentiated and highly substitutable products – Read More …
Reasons why such countries have not realized these benefits
Most developing countries especially the sub-Saharan African countries have not realized the full benefits from International Trade. Required: Discuss the main reasons why such countries have not realized these benefits Some of the reasons why most developing countries (especially the Read More …
Factors that may cause a shift of the supply curve
Discuss some of the factors that may cause a shift of the supply curve Factors: Cost of production (factor prices) Government policy (taxation and subsidies) Natural events (e.g weather) Goals of the firm Availability and cost of credit Transport and Read More …
How Domestic economic governance and transparency may contribute to economic growth and development in developing countries
Outline how Domestic economic governance and transparency may contribute to economic growth and development in developing countries Economic governance and transparency are about being open and exposed to constructive criticism and rating on matters pertaining to sound economic management and Read More …
Why reduction of Government deficits has increasingly become an important issue in fiscal policy framework of developing countries
Explain why reduction of Government deficits has increasingly become an important issue in fiscal policy framework of developing countries Reduction of Government deficits has increasingly become an important issue in fiscal policy framework of developing countries because of some reasons Read More …
Main causes of budget deficits
What are the main causes of budget deficits? Budget deficit – the excess of government spending over revenue; the main causes of government budget deficits include: Commitment to social welfare programmes Demographic trends Fundamental macro economic shifts eg slower growth Read More …