For Monash University Students: If you have studied intermediate level microeconomics this will be easy reading. Please assist fellow students. Financial Markets bring together borrowers and lenders of funds. They bring aggregate saving into equality with aggregate investment. Consumers have different time preferences for their consumption. Producers use capital until its marginal revenue productivity equals its opportunity cost in interest charges. These are Paretian optimal solutions for welfare
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different ads aim to achieve in the people that they target. From the 15 appeals by ‘Jib Fowles’‚ there is need for sex‚ need for affiliation‚ need to nurture among any others. These appeal to different issues and needs from society. The Yamaha curve ad is presented in a 1900 environment and it’s a motorbike standing majestically on the open road. The ad appeals to the need to achieve for individuals. The need to achieve appeals to the desire to achieve something difficult and is usually considered
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because firms have more attractive investment opportunities. Both the supply and demand curves (Bd and Bs) shift to the right‚ but as is indicated in the text‚ the demand curve probably shifts less than the supply curve so the equilibrium interest rate rises. Similarly‚ when the economy enters a recession‚ both the supply and demand curves shift to the left‚ but the demand curve shifts less than the supply curve so that the interest rate falls. The conclusion is that interest rates rise during booms
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In-arrear swaps are popular products in a steep yield curve environment to a fix rate receiver who thinks that short term rates will not rise as fast as the yield curve predicts‚ pocketing up the difference between the fix rate of the standard swap and the one of the in-arrear swap known as the pick up‚ while still paying low Libor resets. Usually‚ clients (corporates or financial institutions) receive fix and pay floating. In a steep yield curve environment‚ because of the delayed resets‚ an in-arrear
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6 Most Important Things to Consider When Choosing a Broker The retail forex market is so competitive that just thinking about having to sift through all the available brokers can give you a major headache. Choosing which broker to trade with can be a very overwhelming task especially if you don’t know what you should be looking for. In this section‚ we will discuss the qualities you should look for when picking a broker. 1. Security The first and foremost characteristic that a good broker must
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cardinal approach 5.6 Consumer’s surplus 5.7 The ordinal utility approach to consumer behaviour: the indifference curve approach 5.8 Consumer’s budget constraint 5.9 Consumer’s equilibrium in the ordinal utility approach 5.10 Special cases 5.11 Price-consumption curve 5.12 Income-consumption curve 5.13 Price‚ substitution‚ and income effects 5.14 Derivation of the demand curve for a good 5.15 Inferior goods and Giffen goods 5.16 Let us sum up 5.17 Some key words 5.18 Some useful books
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be falling. C) can be less than zero. D) never equals average product. Ans: C Exhibit 3 4. (Exhibit 3: Short-Run Costs) Curve A is the _______ cost curve. A) average total B) average variable C) marginal D) total Ans: C Exhibit 4 5. (Exhibit 4: A Firm ’s Cost Curves) The curve labeled V represents the firm ’s _______ curve. A) total cost B) average total cost C) marginal cost D) average variable cost Exhibit 5 | | 6. | (Exhibit 5:
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of an indifference curve? Question 5 answers | | An indifference curve is convex to the origin / | | | The consumer is indifferent between any two points on an indifference curve / | | | The marginal rate of substitution diminishes as you move down the indifference curve | / | | As you move from one indifference curve to another indifference curve closer to the origin‚ utility increases | An indifference curve is Question 6 answers
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In addition‚ the Gini coefficient‚ “which directly relates to the graphical depiction of inequality provided by the Lorenz Curve” ‚ shows Australia rising from 0.307 in 1995/96 to 0.345 in 2007/08. This large increase in the Gini coefficient of around 0.25 to over 0.30 was a result of the 1991 recession‚ in which “long-term unemployment became entrenched and underemployment
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applying a translog variable cost function‚ the capacity utilization has been estimated with respect to two alternative measures of potential output: (i) where short-run average cost is minimum‚ and (ii) whe re short-run and long-run average cost curves are tangent. The results reveal that the capacity utilization in Indian Airlines has been poor in general and also declining over the last decade. Therefore‚ the study suggests a need to improve the capacity utilization‚ which in turn would improve
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