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

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

Explain the precautions that should be taken while estimating national income by expenditure method.

Will the following be included in the domestic product of India? Give reasons for your answer.

A. Profits earned by foreign companies in India

B. Salaries of Indians working in the Russian Embassy in India

C. Profits earned by a branch of State Bank of India in Japan