Question
Solution
The new equilibrium income is Y*=1115/1.4=796.4 The change in equilibrium income is less than the shift of the IS curve. This is because of the crowding out effect of investment: rising interest rate reduces the investment and hence reduces the aggregate income.
  Consider the following production function
Y = F(K,AL) = K1/3(AL)2/3
Calculate the Golden state level of capita...
Which of the following is true for Disposable Income?
Which of the following statements regarding Priority Sector Lending (PSL) norms in India is incorrect?
If the marginal propensity to save is 0.3 and the marginal propensity to import is 0.1, and the government increases expenditures by Rs. 10 billion, ign...
 If a Cobb-Douglas production is Q = K0.4 L0.6 the function is
Which of the following could be a remedy for Multicollinearity Problem?
In case of Cob web Model, Damped Oscillation is witnessed when
If a constant 60 is subtracted from each of the values of X and Y, then the regression coefficient is
Which of all the following is not an assumption of Marshall Consumer Theory of Demand?
Guess an even integer between 1 and 100 that is closest to 1/2 of the mean of the guesses, what will be the equilibrium in that case?
