Forums

Cash balance approach

Economics

answered on 12-Sep-23 11:59

Explain the equation Md= k.PY with example

latest answer

Real Income (Y): This refers to the total value of all goods and services produced in an economy, adjusted for price changes or inflation. It measures the actual physical quantity of output. When we say "income" in this context, we're referring broadly to the value of all goods and services produced, often called GDP (Gross Domestic Product). Price Level (P): This is a measure of average prices in the economy. It can be thought of as a weighted average of the prices of all goods and services in the economy. Nominal Income (PY): This refers to the total value of all goods and services produced in an economy without adjusting for price changes or inflation. It represents the current dollar value of output, which is the product of the quantity of output and the prices at which the output is sold. When you multiply the quantity of goods and services (real income or Y) by their prices (P), you get the total dollar value of these goods and services, which is the nominal income (PY).

Sajeetha R

Sajeetha R

CA Final

45K+

2

134

Law of demand

Economics

answered on 10-Sep-23 19:00

How to solve the 34th question

latest answer

Inelastic is correct

Taniya Thakur

Taniya Thakur

CA Foundation

1K+

3

152

Law of demand

Economics

answered on 10-Sep-23 18:43

The answer of this question is B) or D) ?

latest answer

when the quantity demanded falls due to the price rise

Taniya Thakur

Taniya Thakur

CA Foundation

1K+

2

166

Query

Economics

answered on 30-Sep-23 11:09

In Keynesian theory chapter should be learn to draw those diagrams provided on the ICAI study Material?

latest answer

Understanding the concept will let you to draw graphs first we all should understand what the theory says and also the inference of graph has to be linked with the theory then only we can able to apply it

sradha krishna sunil

sradha krishna sunil

CA Inter

5K+

3

194

Chapter 1 unit 1

Economics

answered on 05-Sep-23 19:41

In expenditure method if we produce a product previous year and consumed in this year means in which year consumption we will take!? Why?

latest answer

Production year is important and it is accounted in that year

Ramya Navanitham

Ramya Navanitham

CA Inter

75

4

176

Chapter 3

Economics

answered on 05-Sep-23 19:39

What is the meaning of fractional reserve system in que. 10

latest answer

CRR is a reserve. Its purpose is not to give out as loan

Rifhat Khan

Rifhat Khan

CA Inter

28K+

3

162

Chapter 3

Economics

answered on 05-Sep-23 19:37

In this question, while calculating M¹ why other deposits with RBI is not added..

latest answer

Please refer to my notes

Rifhat Khan

Rifhat Khan

CA Inter

28K+

1

177

Chapter 3

Economics

answered on 13-Aug-23 12:39

Plz explain Q.12 except the explanation given in the module

latest answer

Yes understood, thanks a lot for the detailed explanation..😇

Rifhat Khan

Rifhat Khan

CA Inter

28K+

2

186

Chapter 3

Economics

answered on 11-Aug-23 13:05

Can anyone explain Q.11

latest answer

The liquidity preference theory of Keynes states the relationship between interest rate, liquidity preferences, and the quantity or supply of money. It explains the preference for money or liquidity and the reason to demand and get a high-interest rate for long-term financial assets.

Rifhat Khan

Rifhat Khan

CA Inter

28K+

1

152

National income

Economics

answered on 31-Jul-23 21:27

Does economics goods and services produced with a domestic territory include the income of foreigners(one who came to India from abroad for earning)

latest answer

That foreign income will be added outside their country..... But what ever goods have been produced that will be included in the indias national income... I hope This is clear to you

Sai Ram

Sai Ram

CA Inter

540

2

205

CFA Webinar
ibs launch
Tally + Excel Free