Ask questions which are clear, concise and easy to understand.
Ask QuestionPosted by Manav Sharma 5 years, 7 months ago
- 1 answers
Posted by Ritik Pandey 5 years, 7 months ago
- 1 answers
Posted by Neelam Meena 5 years, 7 months ago
- 1 answers
Gaurav Seth 5 years, 7 months ago
Posted by Shikhar Choudhary 5 years, 7 months ago
- 0 answers
Posted by Manav Sharma 5 years, 7 months ago
- 1 answers
Gaurav Seth 5 years, 7 months ago
Investment multiplier implies that any change in the investment leads to a corresponding change in the income and output by multiple times. That is, in other words, the change in the income and output is more than (or multiple times of) the change in investment.
Investment Multiplier, K = △Y/△I
Investment Multiplier shares a direct positive relationship with marginal propensity to consume. That is, higher the value of MPC, higher will be the value of investment multiplier and vive-versa. That is Higher the proportion of increased income spend on consumption, higher will be value of investment multiplier.
Algebraically, the relationship is expressed as follows.
K= 1/(1- MPC)
Posted by Ritika Choudhary 5 years, 7 months ago
- 1 answers
Gaurav Seth 5 years, 7 months ago
(i) Heavy reliance on public sector, (ii) Regulated development of private sector, (iii) Protection of small-scale industry and regulation of large-scale industry, (iv) Development of heavy industry of strategic significance, (v) Thrust on saving and investment, (vi) Protection from foreign competition, (vii) Focus on import substitution, (viii) Restriction on foreign capital, (ix) Centralised planning.
Posted by Khushi Singh 5 years, 7 months ago
- 1 answers
Roshan Singh 5 years, 7 months ago
Posted by Rupali Singh 5 years, 7 months ago
- 1 answers
Anjali ? 5 years, 7 months ago
Posted by Rupali Singh 4 years, 11 months ago
- 1 answers
Sia ? 4 years, 11 months ago
Nearshoring means that you as a company can outsource your projects and needs somewhere quite cheap (cheaper than an in-house team but more expensive than an offshore team) and quite close. Offshoring means that you (as a company) can outsource your projects or needs somewhere very cheap but very far.
Posted by Rupali Singh 5 years, 7 months ago
- 1 answers
Posted by Vaishnavi Madavi 5 years, 7 months ago
- 4 answers
Vaishnavi Madavi 5 years, 7 months ago
Posted by Rupali Singh 5 years, 7 months ago
- 1 answers
Sameeksha Rohilla 5 years, 1 month ago
Posted by Devil ? 5 years, 7 months ago
- 2 answers
Aniket Kumar 5 years, 7 months ago
Posted by Anirudh Shukla 5 years, 7 months ago
- 2 answers
Gaurav Srivastav Gs 5 years, 7 months ago
Yogita Ingle 5 years, 7 months ago
Kolbe reaction, also known as Kolbe Schmitt Reaction is a type of addition reaction named after Hermann Kolbe and Rudolf Schmitt. When phenol is treated with sodium hydroxide, phenoxide ion is generated. The phenoxide ion generated is more reactive than phenol towards electrophilic aromatic substitution reaction. Hence, it undergoes electrophilic substitution reaction with carbon dioxide, which is a weak electrophile. Ortho-hydroxybenzoic acid (salicylic acid) is formed as the primary product. This reaction is popularly known as Kolbe’s reaction.
An example of the Kolbe reaction (Kolbe Schmitt Reaction) is given below:

Kolbe’s Reaction – Treating phenol with sodium hydroxide generates phenoxide ion
Posted by Anirudh Shukla 5 years, 7 months ago
- 1 answers
Posted by Sandeep Ojha 5 years, 7 months ago
- 1 answers
Posted by Manav Sharma 5 years, 7 months ago
- 1 answers
Yogita Ingle 5 years, 7 months ago
Inflationary gap is the gap showing excess of current aggregate demand over 'aggregate supply at the level of full employment'. It is called inflationary because it leads to inflation (continuous rise in prices).
Posted by Manav Sharma 5 years, 7 months ago
- 1 answers
Yogita Ingle 5 years, 7 months ago
Foreign exchange rate is determined by the market forces of demand and supply in foreign exchange market.
The rate of exchange is obtained from the equilibrium exchange rate, which we get when the supply of foreign exchange equals to the demand for foreign exchange.
In the given figure, DD curve represents the demand for foreign exchange and SS curve represents the supply of foreign exchange for different values of R, i.e. rate of exchange. Point E is the equilibrium point, where DD = SS. So, R will be the rate of exchange.
If the rate of exchange is arbitrarily fixed other than R, there will be a situation of either excess demand or excess supply of foreign exchange. So, R is the rate of exchange which corresponds to the equilibrium point E.

Posted by Manav Sharma 5 years, 7 months ago
- 1 answers
Yogita Ingle 5 years, 7 months ago
Investment multiplier refers to the number of time by which the increase in output or income exceeds the increase in investment. It is measured as the ratio between change in income and change in investment. For example investment is increased by 1,000 crore rupees, now
|
Particulars |
Increase in Income |
Change in Consumption |
Change in Saving |
|
Fist Round |
1000 |
800 |
200 |
|
Second Round |
800 |
640 |
160 |
|
Third Round |
640 |
512 |
128 |
|
All other Rounds |
2,560 |
2,048 |
512 |
|
Total |
5,000 |
4,000 |
1,000 |
(a) In the multiplier process, increase in income in the first round is always equal to additional investment. So, Increase in income in the first round =Rs.1,000=Rs.1,000 crores.
(b) The saving off Rs. 200 crores indicates that increase in consumption will be Rs. 800 crores in the first round.
- additonal consumption of Rs. 800 crores out of an additional income of Rs. 1,000 indicates that 80% of income is spent, Le. MPC = 0.8. The values of second and third round are calculated on the basis of this data.
(c) Total Increase in Income = Additional Investment x kxk. In the given case:
Multiplier (k)=11−MPC=11−0.8=5(k)=11−MPC=11−0.8=5
So, Total Increase in Income =1,000×5=Rs.5,000 crores=1,000×5=Rs.5,000crores
(d) Total Increase in Consumption == Total increase in Income ×× MPC =5,000 x 0.8=Rs.4,000 crores=5,000x0.8=Rs.4,000crores.
(e) Total Increase in Saving == Total Increase in Income −− Total Increase in Consumption =5,000−4,000=1,000 crores=5,000−4,000=1,000crores.
(f) Values of All other Rounds' is calculated after subtracting the values of first, second and third round from the total increase in income, consumption and saving respectively.
Posted by Bajrangee Kumar 5 years, 7 months ago
- 0 answers
Posted by Manav Sharma 5 years, 7 months ago
- 1 answers
Yogita Ingle 5 years, 7 months ago
Central bank is an apex bank that controls and regulates the entire banking system of a country. The various functions performed by central bank are:
1. Bank of issuing notes: Central bank has monopoly rights of issuing notes. This is called currency authority function of central banks. All notes issued by central bank are an unlimited legal tender in the country.
2. Banker to the Government: Central bank is a banker, agent and financial adviser to the government. It manages the account of the government, it buys and sells the securities of the government and it frames policies to regulate the money market.
3. Custodian of foreign currency: The central bank maintains a minimum reserve of international currency all the time in order to meet emergency requirements of foreign exchange and overcome adverse requirements of deficit in balance of payments.
4. Lender of last resort: The central bank also lends money to commercial banks. When the commercial banks are facing liquidity crunch or any type of insolvency, the central bank are the last resort to provide loans against treasury bills, government securities, and bills of exchange.
5. Maintains cash reserves of commercial banks: The central bank takes care of the cash reserves of commercial banks. Commercial banks are required to keep certain amount of public deposits as cash reserve, with the central bank.
6. Control of credit: The central bank has power to regulate the credit creation by commercial banks. The credit creation depends upon the amount of deposits, cash reserves, and rate of interest given by commercial banks. All these are directly or indirectly controlled by the central bank. Therefore, they have the power to control the amount of credit creation of commercial bank.
Posted by Manav Sharma 5 years, 7 months ago
- 1 answers
Yogita Ingle 5 years, 7 months ago
Allocation of resources is one of the important objectives of government budget. In a mixed economy, the private producers aim towards profit maximisation, while, the government aims towards welfare maximisation. The private sector always tend to divert resources towards areas of high profit, while, ignoring areas of social welfare. In such a situation, the government through the budgetary policy, aims to reallocate resources in accordance with the economic (profit maximisation) and social (public welfare) priorities of the country. Government can influence allocation of resources through:
(i) Tax concessions or subsidies:To encourage investment, government can give tax concession, subsidies etc. to the producers. For example, Government discourages the production of harmful consumption goods (like liquor, cigarettes etc.) through heavy taxes and encourages the use of ‘Khaki products’ by providing subsidies.
(ii) Directly producing goods and services:If private sector does not take interest, government can directly undertake the production.
Posted by Manav Sharma 5 years, 7 months ago
- 1 answers
Yogita Ingle 5 years, 7 months ago
| Direct Tax | Indirect Tax |
| Direct tax is imposed directly on the taxpayer and is paid by the taxpayer directly to the government. The incidence and impact of the tax is on the same person. | Indirect tax is tax collected by intermediaries (for e.g. retailers) from the ultimate taxpayer i.e. consumers. The incidence and impact of the tax is on different persons. |
| Its burden cannot be transferred to other person | Its burden can be shifted from one person to onther. For e.g. manufacturer shifts the burden of tax to reatailers who inturn shift it ot consumers. |
| It doesn't affect the prices. | Indirect tax may affect prices, as generally consumers pay high prices which are inclusive of taxes. |
| For example - Income tax, property tax etc. | For example - VAT, custom duty etc. |
Posted by Manav Sharma 5 years, 7 months ago
- 1 answers
Yogita Ingle 5 years, 7 months ago
(i) Borrowings from abroad are recorded in the Capital Account of the BOP because these give rise to foreign exchange liabilities. These are recorded on the credit side because these bring foreign exchange into the country. (ii) Borrowing from abroad raise supply of foreign exchange. Demand for foreign exchange remaining unchanged, exchange rate is likely to fall.Read more on Sarthaks.com - https://www.sarthaks.com/85377/indian-investors-borrow-from-abroad-answer-the-following
Posted by Manav Sharma 4 years, 6 months ago
- 1 answers
Sia ? 4 years, 6 months ago
The statement is false because export and import of all goods including machines are recorded in current account.
Posted by Krishna Verma 5 years, 7 months ago
- 3 answers
Tannu Rao 5 years, 7 months ago

myCBSEguide
Trusted by 1 Crore+ Students

Test Generator
Create papers online. It's FREE.

CUET Mock Tests
75,000+ questions to practice only on myCBSEguide app
myCBSEguide
Lakshay Kapoor 5 years, 7 months ago
0Thank You