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ernment cuts the Level oF government purchases and the Central Bank responds by increasing money supply. Mich of the following 18 the wost 24kely result? rest rates anda higher budget surplus, rents in the interest rate and ovtpat {mr investeont ond the badger deficle en consungon an ower tan Pevenves fotloving statenents 35 f8tse? fe prestor than naninal GBP if prices are falling brester than runinal GOP St prices are rising sinot docreate Af prices are rising e610, canigcon «40, gross pitts dase tnestnet = 1,20, goermint purses «1,80, leh of te foong 1s tue? end egos 18 1 of the expenditure sector with no government or foraign sector, If the savings function 1s defined a8 5 = 500 + (0:1)¥ and autonenbus Investnent Sncreases by It a nau house, Sought a used car, and bought sane goverment bonds. snien of the folloxing t= true? Sn povernment purenaaes went tp since you Bought sued car and goverment Donde rar Uneestmant wert up since you bog sed car and goverment Bonde sd goveranat prchaee nap ance You Sult a rou Moe ae bape Eoveromnt bonds ny with oo Foreign sector, © werginsl propensity be seve (aps) = 0.15 aol on incon ten rate of t= 1/9: Moat change in government purchanes, snsing ether va sfference between Primary Deficit and Fiscal Deficit neasures in India? fovenue Recsieea/novoros fapandicane in Fisea) oefiese but noe in Pinary Deftett Interest Paynante in Fiscal Deflest Out aot in Prinary Deficit Capital Raceipes/Capital Expenditure "in Faecal Qetiett but not in Primary Deficit

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