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प्रश्न
"The Government has raised the exemption limit for the payment of Income tax from ₹ 2 lakh to ₹ 2.5 lakh."
If the situation of deficient demand is prevailing in the economy, what will be the impact of this action taken by the government?
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उत्तर
The increase in the exemption limit from 2 lakh to 2.5 lakh will help to correct the situation of insufficient demand. It will increase disposable income, causing them to increase spending and, as a result, demand will rise. As a result, the government's action to correct deficient demand is commendable.
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संबंधित प्रश्न
Explain ‘Paradox of Thrift’.
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The value of the multiplier is ______
If MPC = 1, the value of the multiplier is ______
The multiplier can be expressed as ______
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'Investment multiplier and Marginal Propensity to Consume are directly related to each other'. Explain with the help of numerical example.
The ratio of the total increment in equilibrium value of final goods output to the initial increment in autonomous expenditure is known as the:
The increase in equilibrium income is more than proportionate to the initial increase in autonomous expenditure because of:
When autonomous expenditure increases by 10 and the MPC is 0.8, the increase in consumption (and aggregate demand) in the round immediately after the initial income rise of 10 is:
Starting from an autonomous expenditure increase of 10 with MPC = 0.8, the successive increments in output across rounds follow the sequence:
The sum of the infinite geometric series \[10\{1 + 0.8 + (0.8)^2 + \ldots\}\] is:
In the investment multiplier formula, ΔĀ represents:
In the multiplier formula \[K=\frac{1}{s}\], the symbol s denotes:
The size of the investment multiplier depends on the Marginal Propensity to Consume (MPC) in the following way:
If the marginal propensity to save (s) is 0.25, the investment multiplier equals:
If the MPC is 0.9, the investment multiplier equals:
