Assuming real income to be ` 200 crores and price index to be 135, calculate nominal income.

Primary deficit equals :

(Choose the correct alternative)

(a) Borrowings

(b) Interest payments

(c) Borrowings less interest payments

(d) Borrowings and interest payments both

Foreign exchange transactions which are independent of other transactions in the Balance of Payments Account are called :

(Choose the correct alternative)

(a) Current transactions

(b) Capital transactions

(c) Autonomous transactions

(d) Accommodating transactions

What is aggregate demand? State its components.

OR

Explain how controlling the money supply is helpful in reducing excess demand.

An economy is in equilibrium. Calculate Marginal Propensity to Consume :

National income = 1000

Autonomous consumption expenditure = 200

Investment expenditure = 100