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I thank you all for the answers, but as u can see ppl have contrasting opinions about this.
I have also tried to find out on the net but could not find anything. Interest rate and inflation have inverse relation, can u ppl please explain the reason of relation between discount rate and inflation u r saying? |
#32
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Within 1 month the process completes.... |
#33
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http://en.wikipedia.org/wiki/Monetary_policy http://www.economicshelp.org/macroec...est-rates.html In the 2nd link you can clearly get the conclusion just the line above the diagram of AS & AD. Hope it will help you and others who are in some sort of confusion. |
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sahar sheikh (Thursday, August 22, 2013) |
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yea sahar it has opposite effect.... simply u can understand with this example... with decrease in discount rate money supply will increase in the economy (now question is how money supply increase in economy? money supply increases due to decrease in discount rate because people tends to borrow more loan from banks when discount rate is lower which causes increase in money supply in economy), when money supply increases in economy then purchasing power of people increase and they are willing to buy goods or services at higher prices which causes inflation... one thing for yours information...we have heard that inflation rate of pakistan is 14.3% what does it mean? i can give u a example you can understand... 6% inflation rate means 100% increase in prices(double price) now u can imagine in pakistan its more than 14%... i hope u will understand....
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Aoa...kindly anyone on this forum share the telephone number from which we have got interview calls...Actually i have to confirm my timing of interview.
Thanx in advance. |
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can somebody please tell what kind of medical test is carried out..............what kind of diseases they confirm whether the candidate is suffering from or not............please............
people who are going to appear for interview tomorrow in lahore please share the questions asked post interview Last edited by Syeda Bukhari; Thursday, August 22, 2013 at 07:24 PM. Reason: Chain posts |
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Was.. It depends from which city you belong, because calls are made from respective Regional Headoffices. but u'll receive an email for interview and they will confirm the time slot too. Last edited by Syeda Bukhari; Thursday, August 22, 2013 at 07:24 PM. Reason: Chain posts |
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sehar i think atif is right....discount rate and inflation are inversely proportional....i might be wrong.........but i think inflation occurs when value of certain currency depreciates against any other curency suppose dollar.....and it happens when supply of money increases and its demand decreases.so when sbp will increase the discount rate on banks, in turn banks will also increase the interest rates to public so lesser people will borrow.circulation of money will decrease and eventually its demand will increase hence money will appreciate and inflation will be converted into deflation......... Last edited by Syeda Bukhari; Thursday, August 22, 2013 at 07:25 PM. Reason: Chain posts |
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sahar sheikh (Thursday, August 22, 2013) |
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