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   Related Questions in Macroeconomics

  • Q : Problem on superior or luxury goods The

    The Income effects will be most strongly positive for: (1) Normal goods. (2) Necessities. (3) Superior or luxury goods. (4) Substitutes and much negative for the complements.

    Find out the right answer from the above options.

  • Q : Demand curves when longer periods are

    Whenever longer periods are considered and hence bigger ranges of adjustments (that is, substitutions) become probable, demand curves tend to become: (i) Flatter, and therefore do supply curves. (ii) Flatter, as supply curves become steeper. (iii) Ste

  • Q : Implications of fiscal deficit

    Implications of fiscal deficit:

    (A) High fiscal deficit entails a big amount of borrowings in which the government takes more loans to pay back it. It raises the liability of government.

    Q : Recovery of loans-capital receipt Why

    Why is recovery of loans taken as a capital receipt?

    Answer: Recovery of loans is always treated as a capital receipt since it leads to refuse in financial assets o

  • Q : Expanding consumption of a good I have

    I have a problem in economics on Expanding consumption of a good. Please help me in the following question. Your consumption of a good tends to expand if it’s: (i) Relative marginal utility surpasses its relative price. (ii) Total utility is les

  • Q : FX rates In June 2005, a Big Mac sold

    In June 2005, a Big Mac sold for 6,000 pesos in Colombia and $3.00 in the United States. The exchange rate in June 2005 was 2,300 pesos per dollar. So, on Big Mac purchasing power parity grounds the Colombian peso was

  • Q : How banking evolved into the

    Give a short history of how banking evolved into the sophisticated operation. Start first with the Goldsmith and sum up with the Banking system which we experience nowadays.

  • Q : Zero primary deficits What points out

    What points out zero primary deficits?

    Answer: Zero primary deficits signify that the government has to resort to borrowings simply to make interest payments.

  • Q : Expenditure of money on party effects

    When you pay a straight A student in advance to write up your term paper and that person expends the money on a party and then, hung-over, can’t do a good job and hence you wind up with an F for submitting sloppily written gibberish, you encompass just suffered

  • Q : Income approach to evaluate national

    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

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