The IS model is represent the .................equilibrium of the economy
- goods market
............. depends on the rate of interest and it is inversely related to interest rate
- dd for money
- ss of money
Which of the following statements accurately describes the consumption function?
- income, savings, price and consumption
- income and consumption
- price, savings and consumption
- income, price and savings
Which of the following statements is an accurate description of propensity to consume
- additional income that gets spent on consumption
- ratio of the consumption to income
- tendency of a consumer to consume more than usual
- actual level of income at which is it equal to the consumption expenditure
Which of the following steps can be taken to increase the aggregate demand?
- Increasing the bank rate
- Increasing the cash reserve ratio
- Selling of the government securities by the Reserve Bank of India (RBI)
- NONE of
What measures can be used to correct the inflationary gap under the monetary policy?
- Reducing the availability of credit
- Cutting the government expenditure
- Increasing taxation