Solve this plz

[mrittik]

OPTION_A.pdf

qsn no 54

[akanksha]

in this q,
 C=0.25x, D=0.75x, and R/D=0.20, also C/D=0.25/0.75, now money multiplier=(C/D+1)/(C/D+R/D)=[(0.25/0.75)+1)/(0.25/0.75)+0.20)]=0.25...so increase in money supply=2000*2.5=5000 units.

[Tanushree]

Please help me with Q 51,52 and 53

[The Villain]

Yar akanksha...which book to refer for these multiplier quest???

[ViV]

51 & 52

[Homer Simpson]

I hope these are the questions you meant. Refered to link provided by Mrittik

51(c)

Y = 3200 + 4000 + 800 - (1/10)Y + 0.5(Y - 2/5Y)
Find Y

52(b)

At Y = 10,000
M = 1000
and X = 800 (autonomous)

so there is a trade deficit of 200

53) (d)

To balance Trade, i need X = M => 800 = (1/10)Y => Y = 8000

So to find t,

8000 = 3200 + 4000 + 800 - 800 + 0.5(8000 - 8000t)

=> 800 = 4000(1-t)
=> 0.2 = 1 - t
=> t = 0.8 = 4/5

So we need to increase the previous tax rate to 4/5

[ViV]

@Ron : Ask Subhayu he knows d book..