Read the following text carefully from ‘The Economic Times’ dated 8th June, 2023:
{“The Reserve Bank of India’s (RBI’s) rate-setting panel unanimously decided to keep the benchmark lending rate unchanged at 6.5%. The committee voted to remain focused on the withdrawal of accommodative monetary policy.”}
On the basis of the given text and common understanding, answer the following questions: (a) Identify and discuss the economic issue indicated in the above text.
Monetary Policy Decision: The RBI maintained its lending rate, signifying a prudent stance to curb inflation and support economic expansion.
Withdrawal of Accommodative Policy: This indicates a transition towards managing the economy's liquidity to achieve inflation stability.
Total consumption expenditure by households under Keynesian Economics is a combination of __________ and ________ .
Surplus in Balance of Payments (BOP) refers to the excess of _________ .
Suppose for a hypothetical economy:
\(C = 100 + 0.75Y\) (where \(C\) = Consumption and \(Y\) = Income)
\(I_0 = 400\) (\(I_0\) = Autonomous Investment)
Value of Investment Multiplier (\(K\)) would be ____________ .