Advertisements
Advertisements
Question
Aggregate demand can be increased by ______
Options
increasing bank rate
selling government securities by the Reserve Bank of India
increasing cash reserve ratio
None of the above
Solution
None of the above
Explanation:
Aggregate demand can be increased by none of the above. This is because aggregate demand is the aggregate expenditure where different sectors of the economy are willing to incur during a particular period of time.
APPEARS IN
RELATED QUESTIONS
What is aggregate supply?
Given consumption curve, derive saving curve and state the steps taken in the process of derivation. Use Diagram.
Explain the concept of 'deficient demand' in macroeconomics.
Derive the two alternative conditions of expressing national income equilibrium. Show these equilibrium conditions on a single diagram.
What is meant by inflationary gap?
Explain the role of Repo Rate in reducing the Inflationary gap.
Explain the role of Cash Reserve Ratio in removing an inflationary gap
explain the role of Bank Rate in correcting deficient demand?
Explain the role of 'Margin Requirements' in removing this deficient demand gap.
Explain the role of 'Open Market Operations' in reducing Deflationary Gap
Explain the subjective factors which determine consumption function.
Explain the determinants of aggregate supply.
State whether the following statements are True or False with reason:
Income earned from foreign investment is considered for aggregate demand.
Distinguish between:
Aggregate Demand and Aggregate Supply
State with reason whether you agree or disagree with the following statement.
Positive net earnings from foreign transactions add to aggregate demand.
Write explanatory answer.
What is 'aggregate supply'? Explain the determinants of aggregate supply.
Answer the following question.
State and discuss the components of Aggregate Demand in a two-sector economy.
Discuss the adjustment mechanism in the following situation :
Aggregate demand is lesser than Aggregate Supply.
How is it determined by using Saving and Investment approach?
If planned savings exceeds planned investments in an economy, explain its likely impact on income, output and employment.
