Chapter Questions
Explain the Friedman and Modigliani theory of consumption.
Critically evaluate the Ando Modigliani Approach of the life cycle hypothesis?
Explain the Friedman's approach of permanent income.
Critically examine Friedman's approach of consumption function with reference to cyclical movements?
What is the Duesenberry Approach of relative income? Explain.
Explain the various types of money.
What are the characteristics of money? Explain in detail.
What are the functions of money?
What are the approaches to demand for money?
Explain the term money multiplier in detail.
How is the money measured? Explain the monetary aggregates in detail?
What are the sources of change in reserve money? Explain in detail.
Explain equilibrium in the money market. How does expansionary monetary policy affect equilibrium?
Net foreign exchange assets of monetary authority changes the reserve money. Comment.
Credit to the commercial banks is an asset for the monetary authority. Comment.
More money supply in the economy leads to increase in the prices. Comment.
Expansionary fiscal policy helps to keep the interest rate stagnant in the economy. Explain.
Critically examine the effect of monetary policy on income?
Write a note -a) Consumption functionb) Permanent incomec) Life cycle hypothesis
Explain the lifespan income and consumption of an individual.
The population structure and education helps to change the consumption pattern of a country. Comment.