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A2 ECONOMICS: Guess Paper-4

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may jun 05 question 26
26B Borrowing from the public by the government will lead to higher demand for currency. So, rise in demand for currency results in increased interest rate. But the exchange value of currency will fall. Imports being costly and exports being cheaper will lead to fall in net exports. Net exports = Exports – Imports.
 
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Q) A closed economy with no government has an equilibrium level of national income of
$10 000 million. Consumption expenditure is $8000 million.
Assuming that the MPC = APC what will be the change in national income following an increase
in investment of $100 million?
A $100 m B $120 m C $400 m D $500 m
 
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Q) A closed economy with no government has an equilibrium level of national income of
$10 000 million. Consumption expenditure is $8000 million.
Assuming that the MPC = APC what will be the change in national income following an increase
in investment of $100 million?
A $100 m B $120 m C $400 m D $500 m
I have sent through attachment see below the last msg
 
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sir please tell me about monetarist and keynesians? i am doing mcq's wrong. anticipate unanticipated increase ?
 
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