Re: JNU DOUBTS

Posted by Granpa Simpson on Apr 17, 2014; 7:34am
URL: http://discussion-forum.276.s1.nabble.com/JNU-DOUBTS-tp7587187p7587194.html

Q16) The overall Savings investment gap initially is 700 crores now as G increases to 850 crores there is a decrease in total savings making the gap -150 crores, this is due to decrease in total savings Now again there is an increase in import demand which is 600 crores...to be in equilibrium this gap in savings and investment has to be nullified by an extra 150 crore of investment which is nullified by an increase in imports by 600 crores and there is an excess of 450 crore which will be nullified by an equal amount of increase in exports i.e 450 units...