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problem 1: Answer any ten from the following:

a) What do you mean by net national income at factor cost?

b) Define the term IS curve.

c) What do you mean by marginal efficiency of capital?

d) Define the term high powered money.

e) What do you mean by consumption function?

f) State the Fishers transaction equation.

g) What do you mean by liquidity trap?

h) State three motives of demand for money.

i) Define the term monetary policy.

j) What is R.B.I’s definition of money supply?

k) Define the term velocity of money.

l) What do you mean by permanent income?

m) State induced investment?

problem 2: Answer the following problems (any two):

a) Describe the circular flow of income in a two sector economy.

b) Describe Tobin’s modified Philip’s curve.

c) State the effects of modifications in money supply on LM curve.

d) Describe the causes for the revival of monetarism.

problem 3: Answer the following problems: (any two)

a) Describe the Fishers quantity theory of money.

b) Describe the lonable fund theory of interest.

c) Describe the Keynecian psychological law of consumption.

d) State and describe the Tobin’s portfolio theory.

problem 4: Answer the given problems (any two):

a) Critically examine the quantitative credit control policy of RBI.

b) Describe relative efficiency of monetary and fiscal policy with IS-LM curves.

c) What do you accelerator? Describe in detail how it influences the investments.

d) What do you mean by marginal efficiency of capital? Describe short run and long-run factors influencing the marginal efficiency of capital.

Macroeconomics, Economics

  • Category:- Macroeconomics
  • Reference No.:- M95731

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