Short Answer TypePrimary deficit equals: (Choose the correct alternative)
(1) (a) Borrowings (b) Interest payments (c) Borrowings less interest payments (d) Borrowings and interest payments both
Foreign exchange transactions which are independent of other transactions in the Balance of Payments Account are called:(Choose the correct alternative)
(a) Current transactions
(b) Capital transactions
(c) Autonomous transactions
(d) Accommodating transactions
An economy is in equilibrium. Calculate Marginal Propensity to Consume:
National income = 1000
Autonomous consumption expenditure = 200
Investment expenditure = 100
Sale of petrol and diesel cars is rising particularly in big cities. Analyse its impact on gross domestic product and welfare.
Rising sale of petrol and diesel cars leads to air pollution. This polluted air causes many diseases related to the respiratory system. It affects human health quality which has a negative impact on the welfare of the nation. Rising sale of petrol and diesel cars means an increase in GDP.
Explain the 'medium of exchange' function of money. How has it solved the related problem created by barter?
Long Answer TypeWhat is the difference between revenue expenditure and capital expenditure? Explain how taxes and government expenditure can be used to influence.
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