Solve Q8,10 plz

Solve Q8,10 plz are an economy Ev'aJn all Che changes that take In economy, when AD AS. g. In the budget of the year 2013-14, government proposed to raise dt_rty on cement. It also proposed to more than rupees one crore per annum. (a) Identify and explain the type of taxes proposed by the (b) Was the objective only to earn revenue for the government? (c) What possible welfare objective could the government be consideringl What are official reserve transactions (ORT)? Explain their importance in Balance Of Payments Account. 11. Briefly explain the concept of under employment equMibrium

10. It refers to transactions by central bank that cause changes in its official reserves of foriegn exchange. Such transactions take place when a country withdraws from its stock of foriegn exchange reserves to finance deficit in its overall BOP. A country with surplus BOP leads to rise in foriegn exchange reserves.They are very important as they help to bring a balance in the country's overall BOP. Such transactions act as a accomodating items in Bop.

View Full Answer