Re: JNU 2006-2002 Doubts

Posted by Homer Simpson on May 07, 2014; 12:13pm
URL: http://discussion-forum.276.s1.nabble.com/JNU-2006-2002-Doubts-tp7588757p7588820.html

I am not sure about 12 but whats the reasoning for (d)? Do we deduct net remittances? I thought that was part of NFIA.

Anjali, as for 5, crowding out happens partially even when not at full employment. Govt borrowing dampens private investment by detrimental change in interest rates. The options on excess capacities are not relevant to this question as much but we can be sure that Govt and private could be competing for available loanable funds to invest in the same sector.

as for 7, new mean is twice the old mean and so is standard deviation. Thus CV is unchanged.