GDP Goods and Services Produced in India ny residents

Residents could be Indians or Non-Indians

GNP GDP - Goods Produced by Non-Indians in India + Goods Produced by Indian Abroad

GDP 5,000,000 Aggregate Demand is Demand for Goods and Services

Output in India 1,250,000 Higher the demand - more the production
of Foreigners More the production - higher the GDP
Output outside India 2,500,000
by Indians Business SectoProprietorships; Partnerships; Companies
6,250,000 Government Federal/Central' State; Local Governmen
GDP-Inflation = NDP Household Individuals and Families
2015 1,000,000 100 1,000,000 1,200,000
2020 1,400,000 120 200000
40% 0.16666667
Nominal GDP Growth = 40% Real GDP Growth 16.67%
ods and Services

rships; Companies
entral' State; Local Governments
75 USD-INR $1 40 INR

America's GDP 5,000,000,000 USD 5 Billion

1.5 Billion Big Mac Index
India's GDP 60000000000
800000000
800 Millions Real rate 5%
1500000000 IRP 3%
SBUs Interest RaDBU CRP 3.50% 0
HH Sector Businesses TP 1.00%
Governments 5-year 12.50% In Nominal terms
Fisher Equation
SBUs Transfer Funds DBUs (1+Real Rate) (1+Inflation) = 1 + Nominal Rate

DBUs issue securities - Share/Bonds/ Preference Shares

Securities are vulnerable to risk
Risk Management Tools - Futures; options; and other derivatives
Service Debt

Increase Taxes
Stimulate Demand by Higher Govt Spending - GDP to Increase - Tax Revenues will automatically increase
Print Mone Err:509
Tbills ShortMat <= 1 year Fiscal Deficit is High
Tnotes 10-Jan Economy is in recession
Tbonds >10 <=30 Decrease Taxes Not an Option
Lower revenue
Government Spending
Tbill in the US T-note in Australia Monetary Policy
Not an Option
Lower revenue
Not an option
FED RBI SLR
CRR
FOMC MPC

Buying/Selling Governmenrt Securities to Increase/Decrease Money Supply 100 20

5
Buying/Selling Foreign Currencies to Regulate Exchange rates Lend Only 75%
Higher the reserves less the bank can le
Discount rate Banks directly borrow from the FED reduce borriwng rates and increase lend
Measure of last resort
Bid Offer
Signalling Tool FED Bring down your interest rates Borrow Lend
Cut the discount rate Lend-Borrow = NIM

Rates to go up
Increase the discount rate
e reserves less the bank can lend
orriwng rates and increase lending rates
India Imports More Demand for USD Increases Supply of INR increases

India exports less Suppy of USD Goes Down Demand for INR goes down

Dollar will appreciate

Rupee will Depreciate High Inflation Low Unemployment

Loqw Inflation High Unemployment