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प्रश्न
Suppose marginal propensity to consume is 0.75 and there is a 20 per cent proportional income tax. Find the change in equilibrium income for the following (a) Government purchases increase by 20 (b) Transfers decrease by 20.
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उत्तर
In case of proportional taxes
(a) `DeltaY=1/(1-c(1-t))xxDeltaG`
MPC = 0.75 and ΔG = 20
`=1/(1-0.75(1-0.2))xx20`
`=1/(1-0.75xx0.8)xx20`
`=20/(1-0.60)`
`=20/0.4=50`
(b) Transfer decreased by 20
`DeltaY=c/(1-c)xxDeltaT`
`=0.75/(1-0.75)xx20`
`=0.75/0.25xx20=60`
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संबंधित प्रश्न
Fiscal deficit equals :
(a) Interest payments
(b) Borrowings
(c) Interest payments less borrowing
(d) Borrowing less interest payments
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Explain the relation between government deficit and government debt.
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Discuss the issue of deficit reduction.
| S. No. | Content | Rs (in crores) |
| 1. | Revenue Expenditure | 100 |
| 2. | Capital Receipts | 40 |
| 3. | Net Borrowings | 38 |
| 4. | Net Interest Payments | 27 |
| 5. | Tax Revenue | 50 |
| 6. | Non-tax Revenue | 15 |
Which of the following is the formula for revenue deficit?
| S. No. | Content | Rs (in crores) |
| 1. | Revenue Expenditure | 100 |
| 2. | Capital Receipts | 40 |
| 3. | Net Borrowings | 38 |
| 4. | Net Interest Payments | 27 |
| 5. | Tax Revenue | 50 |
| 6. | Non-tax Revenue | 15 |
Which of the following is MOST LIKELY to be the main contributor to the fiscal deficit in this case?
Assertion (A): Fiscal deficit is measured in terms of borrowings.
Reason (R): External borrowings increases the Fiscal deficit.
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The difference between fiscal deficit and interest payment is known as ______
______ are the transactions between the residents of two countries that take place due to consideration of profit.
If India exports goods worth ₹20 crores and imports goods worth ₹30 crores, it will have a ______
Fiscal Deficit equals:
The shape of average revenue curve in monopoly is ______
Compare the trends depicted in the figures given below:
| Figure 1: Trends in Fiscal deficit and Primary deficit |
Figure 2: Fiscal deficit as a percent of Budget estimate |
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How good is the system of G.S.T as compared to the old tax system?
On the basis of the given information, calculate the value of:
- Fiscal deficit
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| S.No. | Items | 2021-22 (₹ in crore) |
| (i) | Revenue Receipts | 20 |
| (ii) | Capital Expenditure | 15 |
| (iii) | Revenue Deficit | 10 |
| (iv) | Non-debt creating capital receipts | 50% of revenue receipts |
| (v) | Interest Payments | 4 |
