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Could someone please explain the following?
Q. If the excess of private sector savings over investment in a year in an economy increase by Rs 700 Crores, the net savings of the government sector in a year decreases by Rs 850 Crores and the annual value of imports of goods and services increases by Rs 600 Crores, what is the change in the annual value of exports of goods and services in the economy?
a. increases by 450 crores
b. increases by 750 crores
c. decreases by 450 crores
d. decreases by 750 crores.
Q. Suppose Japanese shareholders own 49% and Indian shareholders 51% of shares of a firm producing automobiles in India. The profits earned by Japanese shareholders of the firm will be a part of:
a. Indian GDP and Japanese GNP
b. Indian GNP and Indian GDP
c. Indian GNP and Japanese GNP
d. None of the above.
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