Read the following statements carefully:
Statement 1: Under the colonial rule, basic infrastructure (like railways, post and telegraph, etc.) was developed.
Statement 2: The real motive behind the infrastructural development in India was to strengthen the British interests.
In the light of the given statements, choose the correct alternative from the following:
Statement 1: Under colonial rule, infrastructure like railways, ports, and postal systems was developed. This is historically accurate.
Statement 2: The primary goal of this development was to serve British economic and administrative interests, such as transporting raw materials and military goods efficiently, rather than benefitting the Indian population.
For a hypothetical economy, assume the government increased an infrastructural investment by ₹ 30,000 crore. 80% of additional income is consumed in the economy. Estimate the increase in income and the corresponding increase in consumption expenditure in the economy.
Read the following statements: Assertion (A) and Reason (R). Choose the correct alternative from those given below:
Assertion (A): The maximum value of Marginal Propensity to Save (MPS) can be unity.
Reason (R): At the break-even level of income, savings are zero.
Read the following statements: Assertion (A) and Reason (R). Choose the correct alternative from those given below:
Assertion (A): The equilibrium level of income is determined when ex-ante spending and ex-ante output are equal.
Reason (R): The equilibrium level of income may or may not be the same as the full employment level of output.
“An increase in the credit creation capacity of commercial banks has a direct impact on the money supply in an economy.”
Discuss the given statement.
“Depreciation of currency may promote exports of a nation.”
Defend or refute the given statement with valid arguments.
“Accommodating transactions are undertaken to maintain stability in the Balance of Payments Account.”
Justify the given statement with a valid explanation.
Suppose in an imaginary economy, autonomous consumption = ₹ 500 crore and marginal propensity to consume = 0.8. The saving function for the economy would be _________ .