Read this article to learn about the top fourteen frequently asked questions on determination of Income and Employment. Q.1. What is the relationship between APS and APC. Can the value of APS be negative? If yes, when? Ans. Income can be consumed or saved, thus the sum of average propensity to consume and average propensity to save is always equal [...]
Read this article to learn about the top three frequently asked questions on Government Budget and the Economy. Q.1. Explain why public goods must be provided by the government. Ans. i. Public goods are those goods and services for which consumption by a few people does not reduce the quantity available for others. ii. For example, parks, roads, bridges etc. [...]
Read this article to learn about the top two frequently asked questions on money and banking. Q.1. Explain the concepts of M1, M2, M3, and M4. Ans. Reserve Bank of India has presented four measures of money supply as under: (a) M1: M1 is narrow concept of money. M1 is the most liquid but least comprehensive measure. M1 = C [...]