Correcting deflationary gap
Describe the role of given in correcting deflationary gap in an economy. A) Govt. ExpenditureB) Legal Reserve Ratio
Describe the role of given in correcting deflationary gap in an economy.
A) Govt. ExpenditureB) Legal Reserve Ratio
Expert
A) In a condition of deflationary gap or deficient demand. The Govt. must raise its expenditure that is, there will be much more economic activities in the economy such as building of roads, bridges, canal and so on. This will increase the level of exployment. This will in turn raise the income and the purchasing power. Therefore aggregate demand will increase.B) Throughout deficient demand, central bank decreases the CRR. The outcome of reducing CRR will be view in the surplus cash reserves with the banks that can be offered for credit. The bank?s credit bank decreases SLR, this will have expansionary effect on credit position of the banks leading to rise in thier leading capacity borrowing increases and AD increases.
Relative to firms which are price takers in both the product markets and labor markets, firms through market power in both the product markets and labor markets tend to. (1) Hire fewer workers and pay them less. (2) Rely more heavily on the screening and signaling thr
I have a problem in economics on Technology and resource costs. Please help me in the following question. The short-run supply of macadamia nuts is considerably recognized by: (1) Preferences and tastes. (2) Technology and resource costs. (3) The number of consumers.
The interest rates business investors into economic capital should pay on a loan: (w) reflect the opportunity costs to society of funding one investment in place of another. (x) are relatively trivial investment costs by investors&rsq
Is the study of cotton textile business a macroeconomic or a microeconomic study? Answer: The study of cotton textile business is a microeconomic study.
A bond which pays a fixed annual income always is: (w) an eternity. (x) a perpetuity. (y) worthless. (z) infinitely valuable. Can anybody suggest me the proper explanation for given problem regarding Econom
Most of the people can’t modify relative market prices however have a little control over the relative subjective prices of the goods they consume. They are most probable to make market prices and subjective prices compatible when they: (i) Raise purchases of go
When the annual interest rate is 12 percent and a rental house can be expected to rent perpetually for $1,000 monthly, rough computation suggests the house contain a present value of: (1) $240,000. (2) $144,000. (3) $100,000. (4) $72,000. (5) $12,000.
A main cause of oligopolies is: (w) mergers. (x) economies of scale. (y) barriers to entry. (z) all of the above. Please choose the right answer from above...I want your suggestion for the same.
A monopolist, who does not price discriminate, cannot maximize profits through producing where demand is: (w) price elastic. (x) price inelastic. (y) above marginal cost. (z) above marginal revenue. Hey friends ple
When the last unit produced and sold adds $100 to revenue of a firm and $75 to its costs, this will: (a) increase output to increase profit. (b) reduce output to increase profit. (c) maintain similar level of output to maximize profit. (d) shut down. Discover Q & A Leading Solution Library Avail More Than 1428987 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads No hassle, Instant Access Start Discovering 18,76,764 1958413 Asked 3,689 Active Tutors 1428987 Questions Answered Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!! Submit Assignment
18,76,764
1958413 Asked
3,689
Active Tutors
1428987
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!