Question
If the fiscal deficit of an economy be 3% of GDP and if
the current account deficit also be 3% of GDP in a particular year for that economy, then its aggregate saving must be equal to aggregate investment. The above statement isSolution
The given statement is true. Fiscal deficit is equal to the borrowings made by the government and current account deficit signifies the excess of imports over exports. Borrowings of government will increase money supply by 3% and the current account deficit will decrease money supply by 3%. So, the economy will be at equilibrium and AD = AS or S = I.
The speed of ‘A’ and ‘B’ is 65 km/hr and 40 km/hr, respectively. If the distance covered by ‘A’ in ‘x&r...
A car traveling at a speed of 60 km/h covers a certain distance in 6 hours. If the car increases its speed by 20%, how much time will it save for the sa...
If 'P' reduces his speed by 40% of his original speed, he arrives at his destination 3 hours later than usual. How much time would he take to reach his ...
- 'M' takes 40 minutes more than 'N' to cover 'x' km. If the speed of 'M' and 'N' is 10 km/h and 16 km/h, respectively, then find the value of 'x'.
- In a 200-metre race, runner A can give runner B a 20-metre head start and still finish at the same time. Similarly, runner B can give runner C a 10-metre h...
- In a race of 300 metres, 'P' defeats 'R' by 45 metres, and 'R' defeats 'Q' by 30 metres. Find out how many metres 'P' defeats 'Q' by.
- In a 50 km race, R, S, and T are running at uniform speed. If ‘R’ beats ‘S’ by 10 km, and ‘S’ beats ‘T’ by 6 km, then by how many metres do...
A car travels at three-fourths of its original speed, taking 20 minutes more than the usual time to cover a given distance. Find ...
Ratio of speeds of ‘A’ and ‘B’ is 4:7, respectively. If they participate in a 140-metre race and ‘B’ gives ‘A’, a head start of ‘m’ ...
The downstream speed of a boat is 6 km/hr more than its upstream speed and the ratio of the speed of the boat in still water to the speed of the stream ...
