Y= C+I
I=1000
C= f(Yd)
if Yd = 0, then C=500
MPS= 30%
suppose govt. collects a direct tax revenue equal to 15% of Y & makes TR of 750 units of money per year
1. what is d value of investment multiplier in d economy
2. eq. level of Y.
3. If instead of 750 units of money, govt. makes annual TR of 10%, then d value of investment multiplier.
Hi Sweta
y = 500 + .7 (.85 Y +750) +1000
= 1500 + .595 Y +525
= 2025 / 0.405 = 5000
Inv multplier = 1/ 0.405 = option c
eqb level of incom - option d
If instead of 750 units of money, govt. makes annual TR of 10%, then d value of investment multiplier
inv multiplier = 1 / 0.335 = 2.98 option d
y = 500 + .7 (.85 Y +.10 y) +1000
= 1500 + .665 y
y * = 1500 / 0.335
Does this make sense according to you.. I am also very unsure...
Yes, except that the correct options for the last two questions should be (c) - increases by less than unity, and (a) - decreases by less than 1000, respectively.
1. A
2. B
3. B
4. ..
5. B
6. A
7. B
8. A
9. B
10. D
11. B
12. B
13. C
14. B
15. D
16. A
17. C
18. B
19. B
20. A
21. A
22. C
23. A
24. B
25. C
26. B
27. D
28. B
29. C
30. C
31. D
32. B
33. B
34. C
35. A
36. C
37. D
38. B
39. B
40. D
And except for 33, 39 ... are remaining answers same..??
Please tally these ones too...
41. C
42. ...
43. A
44. B
45. B
46. B
47. C
48. D
49. B
50. B
51. B
52. C
53. A
54. D
55. A
56. B
57. D
58. C
59. D
60. C
61. A
62. C
63. A
64. A
65. B
66. D
67. C
68. D
69. A
70. C
71. D
72. D
73. ...
74. B
75. B
76. ...
77. C
78. A
79. A
80. D
81. ...
82. ...
83. A
84. D
85. A
86. B
87. D
88. A
89. D
90. ...
91. ...
92. ...
93. ...
94. A
95. A
96. A
97. A
98. D
99. C
100. B
The question says that union X = S = union Y so they two collections of sets need to have the same number of elements in order to be equal naa??
5* 20 = 100
and every Yj contains 2 elements so 2n = 100 ie n = 50 ---option D
Hi Ritu and Chocolate Frog, can you please solve the last two parts or point out my mistake ... I am not getting the same answers as you ... Q 60 and 61 please..
for q 20
since x and y are available only in discrete units the consumer wont be able to increase his consumption in discrete amount due to a fall in price and inc in income .....so option should be d.....
for 39
0.99999999...... =0.9 + 0.09 +0.009 + ...........
so its an infinte GP with a =0.9 and r = .1
so applying the Gp formula which is Sn= a/1-r
=.9/1-0.1 =.9/.9 = 1
so ans is option a .....
i hope it helped !!!!!
OHHHHHHH....I dint saw 20th was related to 19th... Sorry!
and interesting for 39... I dont even think this much while doing paper.. for me its like "ofcourse its slightly less than one" .. :/ ... atleast now I know why we have this question..!!!!