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प्रश्न
Explain the role of Cash Reserve Ratio in removing an inflationary gap
उत्तर
Cash Reserve Ratio (CRR) is the necessary minimum percentage of a bank’s total deposits which is to be kept with the Central Bank. Commercial banks need to maintain with the Central Bank a certain percentage of their deposits in the form of cash reserves. The Central Bank can vary CRR between 3% and 15%. When a bank holds a large portion of deposits as CRR, it reduces the provision of credits to the public. This leads to a decline in the demand for loans and consumption expenditure. Thus, the aggregate demand reduces and the economy attains equilibrium.
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संबंधित प्रश्न
State the determinants of aggregate demand.
State three measures to reduce inflationary gap.
Explain the role of Repo Rate in reducing the Inflationary gap.
Explain the role of 'Margin Requirements' in removing this deficient demand gap.
Discuss the situation when aggregate demand is more than aggregate supply at full employment income level.
Explain with reason, whether you agree or disagree with the following statement:
Aggregate supply is influenced only by availability of natural resources.
Define or Explain the following concept:
Aggregate Demand
Give reason or explain.
Aggregate demand is a positive function of the level of employment and output.
Answer in detail.
Explain the determinants of aggregate demand.
Discuss the adjustment mechanism in the following situation :
Aggregate demand is lesser than Aggregate Supply.
On which factor Keynesian Theory of Employment depends?
In a closed economy, aggregate demand is the sum of ______.
Identify the correctly matched pair from Column A to Column B:
| Column A | Column B |
| (1) Y = AD | (a) Level of output at full employment |
| (2) Forward Multiplier | (b) Withdrawal of investment decreases income |
| (3) Paradox of Thrift | (c) People save less or same as before |
| (4) Multiplier (k) < 1 | (d) 0 < MPC < 1 |
Which of the following statement is true?
It is seen that the private consumption expenditure, private investment expenditure, and ex-ante savings have reduced the ______ in the economy.
The slope of the supply curve is measured by ______.
Aggregate demand can be increased by:
“In an economy ex-ante Aggregate Demand is less than ex-ante Aggregate Supply.”
Explain its impact on the level of output, income and employment.
With reference to Simple Keynesian model, give the meaning of ex-ante demand.
If aggregate demand exceeds aggregate supply in a situation of full employment, what will be its impact on the economy?
