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Q1. __________ (Aggregate Demand/Aggregate Supply) refers to total ex-ante expenditure in an economy during an accounting year.
Q2. State whether the following statement is true or false : ‘‘Industrial waste driven into rivers is an example of positive externality.’’
Q3. Define Current Account Surplus.
Equilibrium in Balance of Payments is achieved when the net value of all the receipts and payments is ___________ (zero/positive).
Q4. If Marginal Propensity to Save (MPS) is equal to zero, the value of investment multiplier will be ___________ .
Q5. State two components of Money Supply.
Q6. If Autonomous Consumption (C) is greater than zero, it indicates that the National Income of the economy will be __________ .
Q7. State whether the following statement is true or false : ‘‘Devaluation of currency is said to occur when the exchange rate is increased under the fixed exchange rate system.’’
Q8. Define ‘Tax’.
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