An economy is in equilibrium. From the following data, calculate the marginal propensity to save:

A. Income = 10,000

B. Autonomous consumption = 500

C. Consumption expenditure = 8,000

Explain the ‘‘bankers’ bank’’ function of the central bank.

Explain the process of credit creation by commercial banks.

Explain how government budget can be helpful in bringing economic stabilization in the economy.

Distinguish A. between current account and capital account, and B. between autonomous transactions and accommodating transactions of balance of payments account.