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ok dear. thats niceI will cz i gt those cleared
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ok dear. thats niceI will cz i gt those cleared
its progressive tax which works as a fiscal drag during boom and fiscal boost during recession. it brings stability and avoids too much fluctuation.Whats automatic stabilizer??
is it only progressive tax??its progressive tax which works as a fiscal drag during boom and fiscal boost during recession. it brings stability and avoids too much fluctuation.
yesis it only progressive tax??
Transfer earning is the earning from next best alternative job while economic rent is the difference between original earning and transfer earning.waht is economic rent and transfer earnings ....please explain with diagram
jazakallahTransfer earning is the earning from next best alternative job while economic rent is the difference between original earning and transfer earning.
for example if a person was earning $1000 from his initial job. he left that job and joined the other one at a salary of $800. therefore, $800 is his transfer earning and the difference between 1000 - 800= $200 which he is sacrificing is economic rent.
See the followng graph and hope you can understand the graph and can read it.
You are always welcome dear. God bless youjazakallah
22D When interest rate is low people will hold money with themselves instead of keeping then in bank account. So, its circulation velocity will fall because lending and borrowing will tend to decrease money will stop changing hands.how is the answer D View attachment 36802
but as people are holding money with themselves velocity circulation would increase because the dont save ,they spend more22D When interest rate is low people will hold money with themselves instead of keeping then in bank account. So, its circulation velocity will fall because lending and borrowing will tend to decrease money will stop changing hands.
Borrowers will be willing to get loans due to low interest but on the other hand those who havefunds will not be willing to give loan.but as people are holding money with themselves velocity circulation would increase because the dont save ,they spend more
and why is lending and borrowing decreasing when intrest rate falls?
but sir, once interest rates fall, shoudn't consumption increase, being the next best alternative to saving and investment?? and what is the 'price of equities' mentioned in option 2 opf the posted mcq?Borrowers will be willing to get loans due to low interest but on the other hand those who havefunds will not be willing to give loan.
i first thought it is Abut sir, once interest rates fall, shoudn't consumption increase, being the next best alternative to saving and investment?? and what is the 'price of equities' mentioned in option 2 opf the posted mcq?
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