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Explain the difference among saving and investment as explained by macroeconomists.
Which of the following situations represent investment or saving?
Explain:
a) You use your Rs 20000 pay check to buy stocks in Reliance
b) You borrow Rs. 100000 from a bank to buy a car to use in your company
c) Your room mate earns Rs.1000 and deposits it in her bank account
Firm effects are more important the industry effects. What does this mean? Can you think of situations where this might not be true?
Another area where monetarists differ from Keynesians is money supply and interest rates. In the Keynesian analysis with less than full employment level equilibrium, the interest r
Hello, I am having difficulty in understanding what multiplier is.
what is Y = C(Y,T) + G + I(r)
Buying government securities: When a commercial bank buys government bonds, the effect is substantially the same as that of lending - new money is created. To
Determinants of Money Supply The preceding sections concentrate on the processes through which the commercial banking system creates and destroys deposits by purchasing and se
Consider the economic data for Country A: Unemployment level of 15% Natural Rate of Unemployment is 6%. Required Reserves is 25% C = 50 + 0.75Y; I = 600; G = 250 (note: T = 200 for
What are the crisis affect the economies This crisis would affect the UK in 3 major ways. First the UK would be unable to sell its exports to these economies if they are hea
By given scenario answer the following questions. 1. What phase of the business cycle is the economy? 2. If inflation increased by 5% during the same period, what was the cha
Economic Growth Cyclic Fluctuations At this stage, it is useful for us to understand the difference between economic growth and cyclical fluctuations. Economic Growth Econo
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