Money-just another good
‘What occurs in the money market when there is a raise in income?’
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Making an understanding of money market. The exercise begins by encouraging students to think of the money market in a customary demand-supply framework. This covers aspects of the money market which cause students troubles: stocks/flows, real/nominal and the ‘price’ of money. This goes on to consider several differences in the demand for money provided Keynesian and Monetarist views.
Explain in short the income approach to evaluate national income. Answer: Under income method to compute the National Income, the steps given below have been taken into account: A) First of all production units tha
What does fiscal deficit in government budget mean? Answer: This means more borrowing on the portion of government.
What possible fiscal policy actions can be taken with respect to expenses and income to accurate excess demand and deficient demand in economy? Answer:
Explain the concept of “economies of scale” and “increasing returns”.
‘The country is at present in recession and this has led to worse tax revenue and high expenses. The effect is a huge deficit. The government decides to increase taxes and lower government expenses. Is this an excellent idea?’
State the Law of supply and explain the factors that affecting supply of commodity
Cite examples of recent decisions that you made in which you, at least implicitly, weighed marginal cost and marginal benefit?
Let suppose NDPFC is Rs. 1,000 crores, and NFA is Rs. (--) 5crores, then what will be national income (NNPFC)? Answer: NNPFC = NDPFC+NFA = 1000 + (-5) = Rs. 995 crores.
how to calculate national income under value added method
For every value of real GDP, actual investment equals? A. Planned Investments B. The difference between planned investments and actual saving. C. The difference between planned saving and actual saving. D. Planned Saving
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