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Nilanjan Bhowmick AIR 3, CSIR NET (Earth Science)
- UGC NET
- Economics
72. which of the following does not appear as a leakage in the working of 72. investment multiplier? liquidity preference (2) financial investment (3 net import
72. Which of the following does not appear as a leakage in the working of 72. investment multiplier? Liquidity Preference (2) Financial Investment (3 Net Imports (4) Absence of Excess Stock (1) KTT 37TYATA (2) faria fAdm (3) 3TAIa (4) 37ft RiG ueaia 73. Which of the following statements best describes Keynes view on working of bank rate as a method of credit control? (1) He says that bank rate does not influence the economy at all (21 He argues that it affects the economy through its influence on long-term interest rates (31 He argues that it affects the economy through its influence o short-term interest rates (4) None of the above
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Nidhi taparia Best Answer
72. The correct answer is (2) Financial Investment. Investments are additions or injections of dormant savings into the money system. Hence they are not leakages in the multiplier process, in fact they are the opposite.