Question
1. State whether the following statements are true or false or uncertain. Give reasons supporting your responses. (a) If you deposit Rs 1,00,000 of your
1. State whether the following statements are true or false or uncertain. Give reasons supporting your responses.
(a) If you deposit Rs 1,00,000 of your cash in a Demand Deposit Account in your bank, then in a 100% Reserve Banking System, the effect on aggregate money supply will be to increase it by Rs 1,00,000.
(b) An increase in the propensity to save leads to an increase in total saving.
(c) Many people use credit or debit cards to make purchases. Because money is the medium of exchange, credit cards are part of the economy's measure of stock of money supply.
(d) In India, women tend to drop out of the labour force to indulge in unpaid care work. If women were to spend less time on unpaid care work, they would add billions to the country's GDP.
(e) In a small economy, firms depend only on their own funds, such as inherited wealth or by taking help from relatives and friends, to finance their investment projects. In such an economy, an expansionary fiscal policy will be detrimental to their investment plans.
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