If Marginal Propensity to Save is 20% and is constant at all levels of income and the autonomous consumption is Rs. 100 crores, construct a consumption function of the given hypothetical economy.

Define autonomous transactions in Balance of Payments of an economy.

OR

Define accommodating transactions in Balance of Payments of an economy.

Define the term ‘‘Involuntary Unemployment’’.

Distinguish between final goods and intermediate goods. Give suitable examples.

OR

If in a locality, a new park is developed by the municipal corporation, it will have externalities, both positive and negative. State one example each of both types of externalities with reason.

In recent times the Indian Rupee (<) depreciated to an all-time low against the US dollar ($). Discuss its impact on India’s Imports.

OR

‘‘A country with trade deficit cannot have a current account surplus in its Balance of Payments.’’ Do you agree with the given statement? Discuss with reason.