rates were increased by 25 basis points as a measure to control increasing inflation. High crude oil prices along with increasing domestic demand had driven up prices‚ and hence the interest rates were increased as a regulatory measure. The repo rate was increased by 100 basis points the next year to 7.25% and the Cash Reserve Ratio was increased from 5 to 5.5. These monetary measures were in response to rising inflation. The CRR was increased significantly to 7.5 in 2007 due to increased money
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In our mixed economy‚ there is a need for regulation and intervention on interest rates and the general level of economic activity. Australia’s current healthy economy has been developed partly through the functions of the Reserve Bank of Australia (RBA). Their functions include; conducting monetary policy‚ acting as a banker to the government‚ settling transactions between banks‚ and ensuring financial stability. The priority function of the RBA is conducting monetary policy. It is an action designed
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points) My family pays for a housekeeper and landscapers. 4. One of the functions of money is as a store of value. How does inflation affect money’s ability to store value? (3-6 sentences. 2.0 points) Inflation is a sign of a weak economy. It decreases the value of money over time‚ so you can’t get as much for your money as you could in the past. If inflation increases‚ it makes more sense to invest in things that are likely to increase in value. 5. Imagine that you are considering moving
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Scenario: Your manager wants you to create a visual aid for the Directors’ Annual Report which you will then present. She has asked you need to create either a poster/picture/spider diagram/flow diagram which describes the influence of the two contrasting economic environments (for Jaguar this would be India and the UK) on the business activities. (P5) You will also need to compare the challenges faced by Jaguar within these economic environments (M2) P5 Uk- Jaguar has different economic environments
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Fall of the rupee: Impact on inflation and Loans By‚ Praveen.G.C Rohith.K.S Sandeep.A What is Inflation ? Inflation is a rise in the general price level and is reported in rates of change. Essentially what this means is that the value of your money is going down and it takes more money to buy things India Inflation Rate The inflation rate in India was recorded at 4.70 percent in May of 2013. Inflation Rate in India is reported by the Ministry of Commerce and Industry
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1. Which of the following is NOT in the labor force? a. Discouraged workers b. Those who worked full time‚ but in a family business c. Those temporarily laid off who will be recalled soon d. The unemployed e. All of the above For the question below‚ assume the following. The non-institutional civilian population is 400 million‚ of which 200 million are employed and 16 million are unemployed. 2. Based on the above‚ the labor force participation rate is a. 4% b. 5% c. 7.4% d. 8%
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1-16 FISCAL DEFICITS AND INFLATION DYNAMICS IN NIGERIA: AN EMPIRICAL INVESTIGATION OF CAUSAL RELATIONSHIPS Emmanuel Ating Onwioduokit Government expenditure in Nigeria has consistently exceeded revenue for most o the years beginning from 1980. This paper investigates the causal relationship f between infation andfiscal deficit in Nigeria from 1970 to 19194. It was empirically confirmed that althoughfiscal dejkit causes inflation‚ there was nofeedback between inflation and fiscal deficit. However
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Maths Exploration Introduction The Inflation rate changes every month and year‚ affecting the value of the money in the country. Inflation reflects a reduction in the purchasing power per unit of money‚ causing the price of goods and services to increase. Although people seem to see inflation as “evil”‚ but it is a necessary side-effect of a growing country‚ as economist sees that a small (<2%-3%) consistent amount of inflation is actually good. Without inflation the prices in the market will fall
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Differentiate between Rational and Adaptive Expectations and clearly explain their role in focusing on future macro-economic variables 1. Rational Expectations The theory of rational expectations was first proposed by John F. Muth of Indiana University in the early 1960s. He used the term to describe the many economic situations in which the outcome depends partly on what people expect to happen. Rational expectations theory is an assumption in a model that the agent under study uses a forecasting
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PIZZA HUT IN BRAZIL Question 2 1. Should Pizza Hut put more of its efforts in expanding in Brazil or somewhere in South East Asia? Why? 1.1 We shall respond to this question through a high level analysis of Pizza Hut’s respective business environment in Brazil and in South East Asia. 1.2 The business environment is the aggregate of all conditions‚ events‚ and influences that affect a company’s operations. It includes customers‚ competitors‚ stakeholders‚ suppliers‚ industry trends‚ regulations
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