Economics Answers

ii) Suppose that a customer deposits $7,000 into their bank account. Based on the simple money multiplier calculated in part i), calculate the final change in the money supply available in the banking system. (Part i answer is 6.25)


iii) Calculate the final change in the money supply available in the banking system if the reserve ratio increases to 25%. Explain briefly how the money multiplier works.

Suppose the government increases the GST. Assume other things are held constant, explain how the increase in the GST will affect the GDP.

You have been asked to provide the details of what might be required to satisfactorily record details of sales made at one of the organisation’s revenue centres.

A. What documents might you need to help you prepare accurate records? List and describe five source documents.
B. List five categories of information which you might need to record.

There is a reduction in headcount which includes retrenchment,retirement and termination of contracts. Explain 2 economic problems other than labour shortage arising from the ageing population.

Does unemployment rate or general government revenue determine why investors should invest in the country? And why it affects?

The indeterminacy problem arises in neoclassical theory of investment because under this theory we want to determine both the rate of capital accumulation and the stock of capital from the same investment equation.What would be the correct option?
a)The statement is false
b)The statement confuses between stock and flow of capital
c)The statement is true

With the increase in price of tomato from Rs. 40 per kg to Rs. 80 per kg in
super market, the demand for tomato has gone down from 40 kg to 20 kg.
Calculate the demand elasticity

Discuss whether the best way for the UK government to cut it's budget deficit would be for it to raise it's spending and cuts.

Analyse the impact of a cut in government spending of 10 billion pounds if the multiplier is 1.5 rather than 0.5

If social welfare payment to the elderly is adjusted according to the increase in the CPI, explain whether the elderly would be better or worse off based on the CPI?