University of Delhi 2006-2nd Year B.Com Macro Economics Analysis and Policy External Correspondence Year : - Question Paper

Macro Economics Analysis and Policy External Correspondence Year 2006 : IInd Year


part A’

Q. I. What is Consumption Function ? Differentiate ranging from marginal propensity to consume and the avg. propensity to consume. 10, 10


Q. 2. Distinguish ranging from autonomous investment and induced investment. What factors influence the decision of the firm with regard to investment? 8, 12


Q. 3. (a) Write a note on paradox of thrift.

(b) discuss the concept of investment multiplier. What conditions are needed for working of multiplier in underdeveloped countries? 6, 14


Q. 4. explain Keynes’ theory of demand for money. 20


Q. 5. (a) What is inflationary gap ? What measures would you suggest to control this gap ?

(b) “Inflation is unjust, deflation is inexpedient, of the 2 deflation is worse.” discuss.


part ‘B’

Q. 6. Prepare an imaginary balance sheet of a commercial bank. discuss how a commercial bank reconciles the objectives of liquidity and profitability? 10, 10


Q. 7. elaborate the objectives of credit control in an economy? explain the merits of qualitative methods of credit control. 10, 10

Q. 8. describe incidence of a tax. discuss the incidence of :
(a) Unit tax and

(b) Lump-sum tax

under monopoly, bringing out the role of demand and supply elasticities. 20


Q. 9. explain the objectives of Fiscal Policy in India. elaborate its limitations? 20


Q. 10. Write notes on:
(a) Recommendations of the 11th Finance Commission;

(b) Characteristics of a good tax system. 10, 10

Earning:   Approval pending.