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  • 1 answers

Prachi Singh 6 years, 10 months ago

Cardinal approch = Alfrad marshell Ordinal approch = J.R. hicks
  • 3 answers

Abhishek Thakur 6 years, 10 months ago

Reverse repo rate is a rate at which commercial bank keep their surplus fund with central bank. In case of excess money supply central bank will increase reverse repo rate so that it is beneficial for commercial bank to keep their funds with central bank. It decreases money supply in the economy because of less credit creation capacity by commercial bank. Open Market Operation is sale and purchase of government securities by central bank to/from commercial bank. In case of excess supply of money central bank sell securities to commercial bank. So, that commercial bank has to pay for it. It decreses credit creation capacity of bank and Ultimately money supply.

Nikita Lohiya 6 years, 10 months ago

And in open market operation the sale of securities by central bank reduces the reserve of banks.It adversely affect the bank's ability to create credit and therefore decrease the money supply

Nikita Lohiya 6 years, 10 months ago

An inc.reverse repo rate induces the bank to transfer more funds to RBI due to attractive interest rate . That's why theee is a inverse relation between revrse repo rate and money supply in the economy
FDI
  • 1 answers

Pragya Tyagi 6 years, 10 months ago

Foreign direct investment. It is the capital invested by foreign outlets in a country like a MNC investing in indian resources.
  • 1 answers

Nitin Jain 6 years, 11 months ago

Excess supply (MS>MD) occurs at a point when the price is high for that commodity. Now the consumer is not getting that much of satisfaction from that commodity that he used to drive from it so he will stop or reduce the consumption of that commodity it means there will be excess supply in the market to get it in equilibrium the seller will reduce the price and hence the market will be in equilibrium again. Note: consumer has no control over price he or she can only demand that commodity the price is only affected by the seller
  • 2 answers

Harvinder Ahlawat 6 years, 10 months ago

Central bank of india RBI

Anand Arora 6 years, 11 months ago

Rbi
  • 1 answers

Yogita Ingle 6 years, 11 months ago

The rate at which commercial banks can borrow money from RBI, when they run short of reserves, is known as bank rate. When the Central Bank increases the bank rate, it increases the cost of borrowing and hence, discourages the borrowers from taking a loan. Due to this, the process of credit creation and flow of money also reduces.
On the other hand, when the Central Bank decreases the bank rate, it encourages the borrower to take more and more loan. A high demand of loan increases the credit multiplier and credit creation process of the commercial banks.

  • 1 answers

Tanisha Garg 6 years, 11 months ago

If price of inputs get increased then, cost of production tends to rise and producer will supply less at the existing price. If price of inouts get decreased then , cost of production also diminish or falls and producer will supply more even at the existing price
  • 1 answers

Tanisha Garg 6 years, 11 months ago

Check it on google as it is very long.
  • 1 answers

Nitin Jain 6 years, 11 months ago

We study the economy of the country under the subject economics
  • 1 answers

Yogita Ingle 6 years, 11 months ago

Consumer's Equilibrium through Indifference Curve:
According to indifference curve approach, a consumer attains equilibrium under two conditions:

  • When marginal rate of substitution is equal to ratio of prices of two goods i.e., MRSxy = Px/Py
  • MRSxy  is continuously falling i.e., indifference curve should be convex to the origin.

Let the two goods be x and y as shown in the following Fig. E is the tangency point of budget line on indifference curve IC2 . For this two basic tools — Indifference Map (i.e., set of indifference curves representing scale of preferences) and Budget Line (representing money income and prices of two goods) are required.

  • 1 answers

Yogita Ingle 6 years, 11 months ago

Consumer Equilibrium Under Marginal Utility Analysis (Cardinal Approach)

1. Consumer’s Equilibrium refers to a situation where a consumer gets maximum satisfaction out of his given money income and given market price.
2. Consumer’s equilibrium through utility analysis can be ascertained with reference to:

  1. A single commodity
  2. Two or several commodities

(a) Single Commodity Consumer Equilibrium:

(i) When purchasing a unit of a commodity, a consumer compares its price with the expected utility from it. Utility obtained is the benefit, and the price payable is the cost. The consumer compares benefit and the cost. He will buy the unit of a commodity only if the benefit is greater than or at least equal to the cost.
(ii) Equilibrium Conditions for Single Commodity Consumer Equilibrium

  • 1 answers

Nitin Jain 6 years, 11 months ago

I think there will be a little increase in demand of bicycles and motorcycles not fully but a little change
  • 2 answers

Tanisha Garg 6 years, 11 months ago

Fixed cost refers to that cost which is incurred by the producer on the purchase of factors of production.It even occurs when output is zero..

Nitin Jain 6 years, 11 months ago

Fixed cost or total fixed cost is always constant it changes only due to selling or purchase of machinery, land and building etc. it forms a horizontal straight line to x axis
  • 4 answers

Sarika Saini 6 years, 10 months ago

There are 2 economic problem rise :- 1. Resources are scare 2. Resoures have alternative uses

Anand Arora 6 years, 11 months ago

Unlimited human wants scarcity of resources

Nikita Lohiya 6 years, 11 months ago

scarcity of resources and alternative use of resources

Gautam Singh 6 years, 11 months ago

Scarcity of resource
  • 1 answers

Tanish Bansal 6 years, 11 months ago

it is just used as a line of reference . it denotes national income (AS) increasing at constant rate .
  • 3 answers

Sarika Saini 6 years, 10 months ago

There are 2 methods of controlling credit by central bank 1. Quantitative Under the quantitative their are 6 rate 1. Repo rate 2. Bank rate 3 . reserve repo rate 4. Cash reserve ratio 5. Statutory liquidity ratio 6. Open market operations 2. Qualitative 1. Margin requirement 2. Rationing of credit 3. Moral suasion

Rajip Chowdhury 6 years, 11 months ago

Quantitative and qualitative credit control policy

Vâňšh Âřôřâ 6 years, 11 months ago

Please give me the answer
  • 1 answers

Rajip Chowdhury 6 years, 11 months ago

Due to inflation domestic goods will become expensive thus export will also become expensive and thus there will be fall in export, and a deficit situation which won't balance the balance of payment.
  • 1 answers

Nitin Jain 6 years, 11 months ago

Substitute goods - positive effect , if price of one commodity goes up then demand of other commodity also rises for example Coke and Pepsi if price of Coke rises then demand of Pepsi will also rise and vice versa Complementory goods - negative effect , if price of one commodity goes up than demand of other commodity declines because they are complement of each other for example car and tyre if price of tyre rises then demand of car decreases and vice versa
  • 1 answers

Rajip Chowdhury 6 years, 11 months ago

This is the situation for equi marginal utility, we're the equilibrium condition is mu/p of one commodity should be equal to mu/p of another commodity which should be equal to the marginal utility of money in other words money income of the consumer. Thanx
  • 1 answers

Ayush Rawat 6 years, 11 months ago

Aggregate demand refers to the total value of final goods and services which all the sector of an economy are planning to buy at a given level of income during a period of one accounting year COMPONENTS:- 1). Private consumption expenditure:- it refer to total expenditure by household on purchase of goods and services during an accounting year. 2). Investment expenditure:- it refers to total expenditure incurred by private firms on capital goods 3). Government expenditure:- it refers to total expenditure incurred by government on consumer goods and capital goods to satisfy the common needs of the economy 4).net export :- it is difference between export and import
  • 1 answers

Gaurav Seth 6 years, 11 months ago

Investment Multiplier refers to increase in national income as i multiple of a given increase in Investment. Its value is determined by MPC. The value equals:

Multiplier = 1/1-MPC or 1/MPS

Suppose increase in investment is Rs.1000 and MPC = 0.8. The increase in National Income is in the following sequence.

(i) Increase in investment raises income of those who supply investment goods by Rs.1000. This is the first round increase.

(ii) Since MPC = 0.8, the income earners spend Rs.800 on consumption. This raises the income of the suppliers of consumption goods by Rs.800, This is second round increase.

(iii) In the similar way, the third round increase in Rs.640 = 800 x 0.8. In this way national income goes on increasing round after round.

(iv) The total increase in income is Rs.5,000 which equals.

△Y = △I x 1/1-MPC

△Y = 1000 x 1/1-0.8 = Rs.5000

Investment Multiplier = 1/1-MPC. It shows a direct relationship between MPC and the value of multiplier. Higher the proportion of increased income spend on consumption, higher will be the value of investment multiplier.

  • 1 answers

Rajip Chowdhury 6 years, 11 months ago

Price mechanism refers to the system where the forces of demand and supply helps to determine the price and quantity of commodity in the market
  • 2 answers

Badminton Shuttlers 6 years, 11 months ago

Implicit cost is the estimated cost of producer own inputs or services which he uses in his business

Badminton Shuttlers 6 years, 11 months ago

Explicit cost is the cost which is being incurred by a firm on buying inputs from market
  • 2 answers

Anand Arora 6 years, 10 months ago

Money market also known as near money

Upendra Kumar 6 years, 11 months ago

no
  • 1 answers

Rajip Chowdhury 6 years, 11 months ago

Consumer equilibrium is important because it helps the consumer to determine the optimum level of consumption for the consumer were he or she will get the maximum satisfaction by consuming a perfect bundle of commodity. Thanx
  • 2 answers

Anand Arora 6 years, 11 months ago

It means excess of expenditure over income

Atish Pal 6 years, 11 months ago

Deficit means kami
  • 1 answers

Yogita Ingle 6 years, 11 months ago

  • Money used for ecological purposes (ecocurrency). It is broadly used in the context of green economists, low carbon economy and political Greens.
  • Throughout the Middle East, Green money refers to money from Islamic businesses, Islamic banks, and the religious sector.
  • 1 answers

Tanisha Garg 6 years, 11 months ago

Flexible exchange rate refers to that rate which is determined by market forces whereas managed floating exchange rate is determined by central bank of india
  • 1 answers

Yogita Ingle 6 years, 11 months ago

The Law of Variable Proportion explains how the output changes when one factor of production is made variable keeping other factors constant. In other words, it refers to the input-output relation when output is increased by varying the quantity of one input.In this law, the unit of labour change by keeping capital constant . As a number of fixed factors,capital is fixed then fixed factor and variable factor can be combined together in varying proportion. So, it is also called " The Law of Proportionality".
If we increase the quantity of variable factor keeping a number of fixed factors constant, then the total production initially increase at increasing rate, then the increase at decreasing rate becomes minimum and ultimately, the total production begins to fall. This law is also called "Short Run Production Function". The short run production function can be expressed as:
Q = f(K, L)

Where, Q = Output

L = Variable input labour

K = Fixed input capital

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