jnu 2014 discussion

[kk]

yes using it we get 10%+3%-8%= 5 % according to ur formula

[siddharth]

3% infln is in foreign so 10=rer +3%-8% and it will give 15% apprcn

[shelly gupta]

According to Interest Rate Parity theory, India's exchange rate should depreciate by 5% since inflation is 5% higher there. So India's currency has appreciated by 10% and it should depreciate by 5%, this implies real change is only 5% appreciation.

and the correct formula is (change in rer)/rer = (change in ner)/ner + foreign inflation - home inflation

[shelly gupta]

also siddarth if you could pls explain 52-54 in little detail. I understood how to graph it. But if initial value is negative then why would x increase and approach zero?

[siddharth]

if u will put any -ve value of x in x^2-x dx/dt>0 which means function is increasing and it will approach 0 as it can't approach 1 bcoz between 0 and 1 value of dx/dt <0 and function will decrease

[Sris]

for 55 the answer in C.....-x/x= -1   (notice we have lim tending to 0 minus)

for 56...(-2,-1)...hence option d...because greatest integer function is everywhere continous except at integer points...

for 57....option is a....check google

[siddharth]

Sorry for 55 yes it will be c ..and thnx for 56 and 57..:)

[Sris]

THIS IS FROM JNU SIS 2014....

A DEVALUATION OF A CURRENCY UNDER THE FIXED EXCHANGE RATE REGIME IS LIKELY TO HAVE NO IMPACT ON BALANCE OF TRADE IF

A) HOME AND FOREIGN OFFER CURVES ARE ELASTIC
B) HOME AND FOREIGN OFFER CURVES ARE INELASTIC
C) HOME AND FOREIGN ELASTICITY OF THE OFFER CURVE SUM TO UNITY
D) ALL OF THE ABOVE

PLZ ANSWER THIS....I AM STUCK IN THIS....

[aditi14]

q29 please explain once.

[sanjeev]

Q 4 im getting (a) and 7 (d as 617/902 = 68%)

[sanjeev]

q8 degree of openness = (X + M) / GDP so option (a)

[sanjeev]

21 c by definition

[dhruv]

For Q.12 it should be c.



So multiplier is not MPC, but the standard one, i.e., 1/(1-MPC)

[dhruv]

I don't know how to solve 63,64,65. These terms are not defined in standard macro books like Mankiw. From google I found out that,

revenue deficit = actual net revenue - expected net revenue

fiscal deficit     = total revenue  -  total expenditure

primary deficit = fiscal deficit in current year - interest payments on previous borrowings

Yet, I couldn't know for sure how to interpret info given in the question.

Please, help.

[Sris]

@dhruv

Revenue deficit=total revenue receipts - total revenue expenditure
For 63....tax revenue (net to centre)+non-tax revenue - planned expenditure on revenue account - non plan expenditure on the revenue account
Divide this by nominal gdp

For 64....fiscal deficit is the borrowing by the govt
Borrowings and other liabilities÷nominal GDP
For 65.....primary deficit= fiscal deficit - interest payments
So....borrowings and other liab - interest payments whole divided by nominal gdp

[siddharth]

For 63 revenue deficit = revenue expenditure-revenue receipts
 For 64 f.d= total expend-(revenue receipts+non debt capital receipts) non debt includes rcvry of loans+ other rcpts
For 65 pd= fd- interest payments

[dhruv]

Thanks Sris and Siddharth.

Also, I found that,

borrowings & other liabilities = total exp. - (revenue receipts + non-debt capital receipts)

[nishtha92]

For 31, shouldn't it be a? X>5 is sufficient for the inequality to hold.

[ABHI1994]

que.31 ans. will be a

On 11 May 2015 at 23:29, nishtha92 [via Discussion forum] <[hidden email]> wrote:

For 31, shouldn't it be a? X>5 is sufficient for the inequality to hold.

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Where can I find the JNU 2014 sss paper ?? Please share the link