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which theory consumption best ecplain the consupmtion behavior ofconsumer of our economy? Question No: 01 [Marks: 10] Which theory of consumption best explains the consumption

which theory consumption best ecplain the consupmtion behavior ofconsumer of our economy?

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Question No: 01 [Marks: 10] Which theory of consumption best explains the consumption behavior of consumers of our economy? Question No: 02 [Marks: 10] If the State Bank started printing large quantities of Pakistani Rupees (Rs), what would happen to the number of Pakistani Rupees a dollar could buy? Why? Question No: 03 [Marks: 10] Describe the difference between foreign direct investment and foreign portfolio investment. Who is more likely to engage in foreign direct investment-a corporation or an individual investor? Who is more likely to engage in foreign portfolio investment? Question No: 04 [Marks: 10] A friend of yours suggests a get-rich-quick scheme: Borrow from the nation with the lower nominal interest rate, invest in the nation with the higher nominal interest rate, and profit from the interest-rate differential. Do you see any potential problems with this idea? Explain. Question No: 05 [Marks: 10] For each of the three theories for the upward slope of the short-run aggregate-supply curve, carefully explain the following: a. how the economy recovers from a recession and returns to its long-run equilibrium without any policy intervention? b. what determines the speed of that recovery

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