principles of macroeconomics
Explain the concept of “economies of scale” and “increasing returns”.
Describe functions of central bank? Answer: (A) Issue of currency: Central bank is the only authority for the issue of currency
Why is interest received classified as revenue receipt? Answer: Interest received is a revenue receipt since it does not build any liability nor it leads to the red
Gross domestic capital formation is always greater than gross fixed capital formation
discuss with the help of IS-LM model why money has no effect on output in classical supply case
A prosperous person who made higher and higher incomes yearly would possibly benefit most from: (w) proportional tax system. (x) progressive tax system, much like the one in place today. (y) regressive tax system. (z) fixed percentage tax system. Q : Why value of MPC is not greater than one Why the value of MPC is not greater than 1? Answer: This is because change in consumption can never be more than change in income.
Why the value of MPC is not greater than 1? Answer: This is because change in consumption can never be more than change in income.
Question: Why might it be difficult for the Fed to formally adopt inflation targeting? Would inflation targeting be a good policy for the Fed in the present economic environment? Q : Are government budget scarcities always ‘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?’
‘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?’
The basic determinant of the transactions demand for money is the
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