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Economics, Accounting & Business: Post your doubts here!

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can someone explain dirty float ??
A system of floating exchange rates in which the government or the country's central bank occasionally intervenes to change the direction of the value of the country's currency. In most instances, the intervention aspect of a dirty float system is meant to act as a buffer against an external economic shock before its effects become truly disruptive to the domestic economy.

For example, country X may find that some hedge fund is speculating that its currency will depreciate substantially, thus the hedge fund is starting to short massive amounts of country X's currency. Because country X uses a dirty float system, the government decides to take swift action and buy back a large amount of its currency in order to limit the amount of devaluation caused by the hedge fund.

A dirty float system isn't considered to be a true floating exchange rate because, theoretically, true floating rate systems don't allow for intervention.

hope that helps...
 
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i have a problem in M/J 2002 P1 economics
http://www.xtremepapers.com/CIE/International A And AS Level/9708 - Economics/9708_s02_qp_1.pdf
Qns 13- no idea how the answer is B? pls explain?
Qns 29- i get that since price of oil increases and its demand is inelastic then demand pull inflation's effect will reduce as people will have less money to spend on other goods.....but what i dont get is how cost push inflation's effect increases....how is it even related?
Qns 30- why D?
hey did you figure out how to do the 13th question??
i kinda got it after this que Que 17..see if you can compare the 2 diagrams and understand?
it helped me! http://www.xtremepapers.com/papers/...d AS Level/Economics (9708)/9708_w08_qp_1.pdf
 
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Another question :S plz help
I dont understand this type of questions, plz explain :/
and thnx in advance
 

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Another question :S plz help
I dont understand this type of questions, plz explain :/
and thnx in advance

The ans is C?
This is bcoz, transfer value is 93500 = 110% so find the original cost figure. that will be 85000.
Balance sheet, you record the cost figure so you can directly find the 20% of 85000 as closing stock.
buh you know when goods are transferred from a manu.acc to a trad.a/c, the 10% is also being transsferrred. So the closing stock in a trading acc will include 17000 + 10% = 18700.
 
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Can some1 help me pleez??
I have doubts in the following questions and da link is below:
http://www.xtremepapers.com/papers/CIE/Cambridge International A and AS Level/Economics (9708)/9708_s06_qp_1.pdf
Q. 7 Ans. is B
Q. 15 Ans. is D
Q. 20 Ans. is A
Q. 27 Ans. is D
Thanx in Advanc!!:)


Que 7 - demand is unitary. Hence, the total revenue/expenditure end of the day should be the same. so current tot.rev is 48000. so for 20000 units to obtain the same revenue price has to be 2.4

Que 15 - its a criteria for cost benefit analysis to be agreed, the social costs should = social benefits.

Que 20 - advalorem is a tax which will make the supply curve to shift to the left, but non-parallel! so it has to be A. Specific per unit tax will result with a parallel shift :)

Que 27 - i dont get it why inflation decreases :/
 
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answer here is D!
so they have to buy q1 to q2 quantity at a price of p2 and it doesn't explain why we choose B in qns 13 of may 2002
Okay this is how i understood. I presumed that the current level of Qty being consumed is Z and the govt now sets a min price of OP1 and you can see that it created a difference of UVWXY. The que says that this difference is being paid by the govt....so hence i think that area will become the cost to the govt.
However, in the other que i gave, the market was at equilibrium and the min price led to excess supply. So to maintain that the govt has to buy the surplus amount and hence the ans is D.
Its a trick played with the diagram. Am not sure if my way of understanding is right, buh i got it.
 
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the rate of inlation of country X will be 20/100 x 100= 20%
country Y - 10/140 x 100= 7.14 %
country Z - 9/90 x 100 = 10%
so the ans is rate of inflation lowest in country Y..

i calculated the rate with the following formula:
chane in index/index of previous year x 100.
got it :)
 
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The ans is C?
This is bcoz, transfer value is 93500 = 110% so find the original cost figure. that will be 85000.
Balance sheet, you record the cost figure so you can directly find the 20% of 85000 as closing stock.
buh you know when goods are transferred from a manu.acc to a trad.a/c, the 10% is also being transsferrred. So the closing stock in a trading acc will include 17000 + 10% = 18700.
Yup! it is C! :D
understood :) thnx :) appreciate everything u did :D
 
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