ép in the role of
krate
(b) CRR
(c) SLR
a)
Employment and Income
What do you mean by effective aggregate demand.
2. Draw he diagram of employment and income determination.
1) AD and AS approach
It) Saving and Investment approach.
3. Draw the diagram of AD and AS. Show change in AD curve due to -
a. Increase in Aggregate government expenditure,
b. Fall in tax rate
c. Decrease in government expenditure
d. Increase and introduction of new tax.
4. Define ex-ant-saving and investment and ex-post saving and investment.
Multiplier
1. Define Multiplier.
2. Write he formula of multiplier.
3. Expla. the relationship between K and MPC.MPS.
4. Show working of multiplier with the lalp of a numerical example.
5. Show the effect of increase in investment on Income use diagram.
6. Show the effect of change in level of AD an Income.
Money and Banking
1. Explain following function of Central Bank
(a) Banker's Banks
(b) Government Bank
(c) Custodian of foreign exchange
(d) Monopoly over note issue
(e) Lender's of Lost resort
2. E in following
(a) Fonsrate
(b) CRR
(C) SLR
(d) Open market operation
(e) Margin requirement
(1) Repo and reverse repo rate
3. Explain the credit creation by commercial banks with the help of numerical exampal.
4. What is money supply.
5. What do you mean by miga powered money.
6. Explain following -M1,M2, M3, M4 measures.
Excess and Deficit Demand
1. Dine unemployment and voluntary unemployment.
2. What do you mean by full employment equilibrium.
3. Explain excess demand, inflation and deflationary gap.
4. Explain deficit demand, deflation and deflationary gap.
5. Draw the diagram showing problem of excess demand explain it.
6. Draw the diagram showing problem of deficit demand explain it.
7. Explain the role of following in correction of excess demand.
(a) Bank rate
(b) CRR
(c) SLR
(d) Repo rate
(e) Reverse repo rate
(9) Open market operation
(c) Marin requirement
Answers
Answered by
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Answer:
Investment Multiplier refers to increase in national income as i multiple of a given increase in Investment. Its value is determined by MPC. The value equals: Multiplier = 1/1-MPC or 1/MPS Suppose increase in investment is Rs.1000 and MPC = 0.8. The increase in National Income is in the following sequence. (i) Increase in investment raises income of those who supply investment goods by Rs.1000. This is the first round increase. (ii) Since MPC = 0.8, the income earners spend Rs.800 on consumption. This raises the income of the suppliers of consumption goods by Rs.800, This is second round increase. (iii) In the similar way, the third round increase in Rs.640 = 800 x 0.8. In this way national income goes on increasing round after round.Read more on Sarthaks.com - https://www.sarthaks.com/84980/explain-the-working-of-the-investment-multiplier-with-the-help-of-a-numerical-example
Explanation:
ép in the role of
krate
(b) CRR
(c) SLR
a)
Employment and Income
What do you mean by effective aggregate demand.
2. Draw he diagram of employment and income determination.
1) AD and AS approach
It) Saving and Investment approach.
3. Draw the diagram of AD and AS. Show change in AD curve due to -
a. Increase in Aggregate government expenditure,
b. Fall in tax rate
c. Decrease in government expenditure
d. Increase and introduction of new tax.
4. Define ex-ant-saving and investment and ex-post saving and investment.
Multiplier
1. Define Multiplier.
2. Write he formula
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