Suppose the nominal interest rate is 7 per cent while the money supply is growing at a rate of 5 per cent per year. If the government increases the growth rate of the money supply from 5 per cent to 9 per cent, the Fisher effect suggests that, in the long run, the nominal interest rate should become
The nominal interest rate becomes 11% in the long run as per Fisher effect.
Initially, 40% of mixture ‘P’, consisting of petrol and diesel, is transferred into mixture ‘Q’, which has a petrol to diesel ratio of 5:4. Afte...
In a 120 litres mixture of milk and water, the ratio of the milk to water is 4:1. If 18 litres mixture is taken out and replaced by same quantity of wat...
There are two buckets X and Y containing mixture of milk and water in which concentration of milk is (a-10)% and (a+15)%, respectively. They are mixed t...
In what ratio must a grocer mix two varieties of tea worth Rs 60 / Kg and 65 /Kg so, that by selling the mixture at Rs 68.20/ Kg he may gain 10%.
In a mixture, the quantity of sugar is 25% of the quantity of water. On removing 70 litres mixture and adding 10 litres each of sugar and water, the qua...
Acid and water are mixed in a vessel A in the ratio of 5:2 and in the vessel B in the ratio 8:5. In what proportion should quantities be taken out from...
A container contains 600 lit of pure milk and P liters of water. Ratio of 25% of mixture to the initial quantity of water is 3 : 4 and when Q liters of ...
A mixture of lime and water contains 3a liters lime and (a + 40) liters water. Upon adding 20 liters more water, the ratio of quantity of water to that ...
600 ml of a mixture contains milk and water in the ratio of 14 respectively. If 90 ml of water and 100 ml of milk are added into it, then the ratio of m...
A mixture contains ‘x’% milk. 25% of this mixture is taken out and is replaced with same quantity of water. This procedure is repeated two more time...
