Explain with the aid of symbols the monetary transmission mechanism when interest rates increase
■The Following is information from the National Income accounts for a hypothetical country:
–GDP RS. 6000 , Gross Investment 800, Net Investment 200, Consumption 4000
–Government purchases of goods and services1100 , Government Budget Surplus 30
■What is
i. NDP ii. Net Exports iii. Government taxes minus Transfers iv. Disposable personal Income v. Personal saving