Economics p3 post ur doubts here..:)

[David Hussey]

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how B i read the examiners report , it says net exports will reduce because currency will appreciate , but how do we know if we hav to see the long term or short term effects ?

govt borrows money, money supply falls. therefore interest goes up
interest goes up, there will be inflow of money into country (hot money) so demand for currency goes up, which appreciates the currency
appreciation means, exports are expensive, and imports are cheaper, exports fall

 

[AlphaBeta]

govt borrows money, money supply falls. therefore interest goes up
interest goes up, there will be inflow of money into country (hot money) so demand for currency goes up, which appreciates the currency
appreciation means, exports are expensive, and imports are cheaper, exports fall

govt borrows money from public, so i dont think MS will change
:/ only if from bank sector MS will chng ryt ?

 

[David Hussey]

govt borrows money from public, so i dont think MS will change
:/ only if from bank sector MS will chng ryt ?

but there is no option for
interest not affected,
so i guess we have to assume it this way

 

[AlphaBeta]

but there is no option for
interest not affected,
so i guess we have to assume it this way

can do the long way
we have to use the AD inc i guess , AD inc bcz govt spendin inc , so inc in pric level ,so inc in pric level inc in transactionary demnad for money ,LP inc, so int rates inc
OR we i think we should just assume not sure anyway

 

[David Hussey]

follow my rule:
if ur confused..memorize it

 

[Bachelor]

View attachment 44522
how B i read the examiners report , it says net exports will reduce because currency will appreciate , but how do we know if we hav to see the long term or short term effects ?

when gvt spending increases inflation takes place whch makes exports expensive so net exports decrease...interest rate goes up because demand increases for loans from banks i.e public not people by govt

 

[AlphaBeta]

when gvt spending increases inflation takes place whch makes exports expensive so net exports decrease...interest rate goes up because demand increases for loans from banks i.e public not people by govt

can u explain the intrest rates goin up again

 

[Bachelor]

can u explain the intrest rates goin up again

demand for loanable funds increase frm govt to finance spending so interest rate goes up

 

[Eden96]

Q4??????

 

[acer786]

Method to solve this mcq ? Help please

 

[Bachelor]

Method to solve this mcq ? Help please

its B 20 ..multiplier is 2 and we have to increase by 10 so change would be to increase by 5k more to 20k

 

[Bachelor]

Q4??????

Its simple formumla mrpl=mc..D because at 16 we employed three workers as average physical product is 16 [16x1] bt now its 18 so 2 workers will be employed

 

[acer786]

its B 20 ..multiplier is 2 and we have to increase by 10 so change would be to increase by 5k more to 20k

U mean we need to multiply the multiplier with the change in income I.e 10,000? So the ans would be 2 X 10,000 equals to 20,000

 

[Bachelor]

U mean we need to multiply the multiplier with the change in income I.e 10,000? So the ans would be 2 X 10,000 equals to 20,000

no u see the change we need to change by 10 so spening will increase by half result would be twice due to multiplier

 

[David Hussey]

no u see the change we need to change by 10 so spening will increase by half result would be twice due to multiplier

how did you get 20 man? :/
can u show the steps

 

[David Hussey]

Its simple formumla mrpl=mc..D because at 16 we employed three workers as average physical product is 16 [16x1] bt now its 18 so 2 workers will be employed

i dont think answer is D for that question

Q4??????

whts the answer?

 

[AlphaBeta]

Anyone ?

 

[AlphaBeta]

David Hussey

 

[unique111]

View attachment 44568
Anyone ?

Is the answer D? A similar or maybe the same question was posted earlier, and solved by Bachelor i forgot the way to do it though.

David Hussey View attachment 44569

Oh god. Learnt a lesson.

 

[David Hussey]

View attachment 44568
Anyone ?

:: A^ do u know this?