Question 1: Consider the questions below

1.Explain the factors that limit the application of monetary tools in the economy of developing countries

2.Economies is concerned with allocation of scarce resources ' outline three resources allocation decisions in an economy

3.Discuss the importance of the concept of opportunity cost in an economy

4.Suggest four contractionary monetary policy measures that could be used to combat the level of inflation in a developing country

5.Explain the monetary views on the quantity theory of money

6.'There have been deliberate attempts to control the rate of interest in some developing countries'

Explain five advantages of rate controls in an economy

7.Describe three ways in which a government could use fiscal policy to stimulate economic growth in a country

8.Explain three motives of holding money as an advanced by the Keynesian liquidity preference theory

9 Describe five instruments of monetary policy that could be used to control the level of money supply

10Describe five factors that limit the effectiveness of monetary policy in developing countries and states

11Suggest four contractionary monetary policy measures that could be used to combat a high level of inflation

12Explain four factors that limit or could limit the effectiveness of credit creation by commercial banks

13Argue for and against a fixed exchange rate system in an economy. Give valid explanations or illustrations where necessary

14Explain six causes of the ever rising budget deficits in developing countries

15Devaluation of currencies of developing countries tends to be ineffective

With reference to this statement, analyze the factors that limit the effectiveness of devaluation in developing countries

16With reference to Keynes liquidity preference theory , distinguish between speculative motive and precautionary motive of holding wealth as money

17Outline four factors that limit the effective implementation of monetary policy in developing countries

18Highlight the limitation on the process of credit creation by commercial banks in a developing country

19Summarize five major reasons why unemployment is a major policy issue in developing country

20Suggest five policy measures that could be adopted to reduce the level of unemployment in a country

Question 2: Answer all questions below.

old Question 59 of 75. Travis operates a consulting business. He uses his personal credit card for both business and personal uses. The total finance charges paid for the year were $957. Travis' total business charges on this card were 41% of all charges. What amount of interest expenses can be deducted on Travis' Schedule C? O $957 O $565 $392 10 Mark for follow upWrite 9 Sentences For Your Response: What are the four basic essential elements necessary in valid contract? What is consideration? The following list briefly describes the four requirements that must be met for a valid contract to exist. If any of these elements is lacking, no contract will have been formed. 1. Agreement. An agreement to form a contract includes an offer and an acceptance. One party must offer to enter into a legal agreement, and another party must accept the terms of the offer. 2. Consideration. Any promises made by the parties must be supported by legally sufficient and bargained-for consideration (something of value received or promised to convince a person to make a deal). 3. Contractual capacity. Both parties entering into the contract must have the contractual capacity to do so. The law must recognize them as possessing characteristics that qualify them as competent parties. 4. Legality. The contract's purpose must be to accomplish some goal that is legal and not against public policy. Even if all of the requirements for a valid contract are satisfied, a contract may be unenforce- able if the following requirements are not met. 1. Voluntary consent. The consent of both parties must be voluntary. For instance, if a contract was formed as a result of fraud, mistake, or duress (coercion), the contract may not be enforceable. 2. Form. The contract must be in whatever form the law requires. Some contracts must be in writing to be enforceable. These requirements typically are raised as defenses to the enforceability of an otherwise valid contract.Answer all the following questions Consider the bivariate random vector 1. Expand the matrix form of the density function to get the usual bivariate normal density involving 01, 02, p and exponential terms in (21 - (1)2, (11 -(2) and (12 -(2)2. 2. Explain what happens in the following scenarios: (a) p=0 (b) p = 1 (c) p= -1The marginal benefit of an additional beach towel is $12. The marginal cost of producing an additional beach towel is $8. If producers are minimizing the average costs of production, then we can conclude: O beach towel production is neither allocationly nor productively efficient O beach towel production is not allocationly efficient but is productively efficient. O beach towel production is allocationly efficient but not productively efficient. beach towel production is both allocationly and productively efficient