Re: JNU DOUBTS

Posted by Dreyfus on Apr 17, 2014; 11:25am
URL: http://discussion-forum.276.s1.nabble.com/JNU-DOUBTS-tp7587187p7587205.html

For 16...I=pvt savings +public savings+current account deficit
Using this I m getting ΔX=450cr
For q18...LM relation is given by money supply = aY-br , since LM is horizontal that implies interest rate is insensitive of Y
Therefore when G↑→Y*↑→Money demand at given interest rate,r*, will increase due to increase in income...