Economics doubt P3 and P4, post it all in here!

[3fatak]

how is it C?

 

[acer786]

Help please ..how to solve this mcq ..correct ans is A

 

[AlphaBeta]

View attachment 44484 how is it C?

credit multiplier = 1/cash reserve
credit multiplier = 1/o.2 (bcz maintaiinin 20%) so inc in deposi is 1/0.2 X 200=1000 and inc in bank loan = 1000-200 =800

 

[rupa]

Thank u ... But i would suggest u to do more in order to secure à better grade

thank u....

 

[acer786]

View attachment 44483
answer is C why cant it be D ?

In this q option c is more accurate as it tells us about the opportunity Cost ...where as option d is a more direct effect and does not relate to welfare because welfare are more related to indirect effects such as externalities

 

[acer786]

credit multiplier = 1/cash reserve
credit multiplier = 1/o.2 (bcz maintaiinin 20%) so inc in deposi is 1/0.2 X 200=1000 and inc in bank loan = 1000-200 =800

Correction : crédit multiplier is 1/r.r (cash réservé) minus 1
Deposit multiplier is 1/ r.r (cash réservé)

 

[AlphaBeta]

Help please ..how to solve this mcq ..correct ans is A

i get country 3 and country 2 falling real GNP per head , sure answer is A ?

 

[acer786]

i get country 3 and country 2 falling real GNP per head , sure answer is A ?

Yea it is A..

 

[AlphaBeta]

Correction : crédit multiplier is 1/r.r (cash réservé) minus 1
Deposit multiplier is 1/ r.r (cash réservé)

credit multiplier = 1/cash reserve
there is no minus 1
if we put minus 1 we get a wrong answer

 

[acer786]

credit multiplier = 1/cash reserve
there is no minus 1
if we put minus 1 we get a wrong answer

It's not about wrong or correct ans ..concepts matter more..u may google or go to tutor2u.com if u doubt me

 

[AlphaBeta]

It's not about wrong or correct ans ..concepts matter more..u may google or go to tutor2u.com if u doubt me

according to my book( oxford revision guide andrew gillespie) credit multiplier = 1/cash reserve ratio
as u said if we use 1/(1-cash reserve ratio) then we get 250

 

[AlphaBeta]

Yea it is A..

marking scheme maybe wrong then

 

[acer786]

according to my book( oxford revision guide andrew gillespie) credit multiplier = 1/cash reserve ratio
as u said if we use 1/(1-cash reserve ratio) then we get 250

 

[acer786]

credit multiplier = 1/cash reserve
there is no minus 1
if we put minus 1 we get a wrong answer

In first column We Need to calculate crédit multiplier i.e 1divided by cash réservé minus 1 [(1/20%)-1] we get 4 times . Then we mulitiply 4 with 200 I.e 800 ...half answer done ... Then we calculate deposit multiplier I.e the amount in second column we will do it like this : 1/cash reserve (1/cash reserve) is 5 times so deposit created is 5 into 200 I.e 1000

 

[David Hussey]

credit multiplier =100/liquidity ratio
which is 100/20=5

 

[acer786]

ans is B ....how ?
help please

 

[David Hussey]

This too. O/N/2008. Answer is D. How?

idk what the hell i did, but i somehow got 200 and 600
for X:
sales:200*10=2000
costs:200*=1800
profit=200

For Y:
sales: 200*10=2000
costs:200*7=1400
profit=600

so it should be between 200 and 600

 

[acer786]

Ans is B ... But again ...how ?

 

[:: A^]

idk what the hell i did, but i somehow got 200 and 600
for X:
sales:200*10=2000
costs:200*=1800
profit=200

For Y:
sales: 200*10=2000
costs:200*7=1400
profit=600

so it should be between 200 and 600

they are asking the price bro.. nt profit

 

[unique111]

Ans is B ... But again ...how ?

Like you've done: multiplier(k)= 1/(.15+0.3+0.05)=2
Change in national income =50,000-40,000=10,000
So change in govt spending= change in national income/k=10000/2=5000
Therefore, govt. has to raise its spending to 15,000+5,000=20,000.
(*finally, i am able to solve someone's doubt.)