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

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can any 1 explain me liquidity trap
liquidity trap is the point when interest rates no longer are affected with a change in MS.
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Fiscal policy is the main tool for economic development. Is it true explain?
yawr ya general ques ha....is ma kuch bhe a skta ha..firstly you have to support this proposition that fiscal policy is an impt tool and explain the tools of fiscal policy that how it works. Then contradict this statement by saying that there are other tools too, like monetary policy(Interest rate) can be another way to trigger econ development...then include Lp theory and also add multiplier effect that how it will work in favour of economy ...and bla bla..isi tarah ki cheezan likh dana
 
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Do we have to know the diagram of the circular flow of income?
That's half answer. Taking toooo long to upload. How am I going?
 

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If loanable funds is money, then what do Kenyesians and Monetarists disagree upon?. Because Monetarists state that Interest rates are determined by the Demand and Supply of Money.. and Kenyesians say its by the demand and supply of Loanable Funds
 
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