# GATE (Graduate Aptitude Test in Engineering) Economics: Questions 1209 - 1212 of 1256

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### Passage

Suppose that for a particular economy for sonic time period, investment was equal to 100, government expenditure was equal to 75, net taxes were fixed at 100 and consumption (C) was given by the consumption function:

C = 25 + 0.8 YD

where YD is disposable income and Y is GDP.

## Question 1209 (3 of 3 Based on Passage)

Appeared in Year: 2019 (UGC NET)

### Question

MCQ▾

What is the value of the government expenditure multiplier ? (June)

### Choices

Choice (4)Response

a.

3

b.

4

c.

6

d.

5

## Question 1210

Appeared in Year: 2019 (UGC NET)

### Question

MCQ▾

A simultaneous equation model is exactly identified, if (June)

### Choices

Choice (4)Response

a.

more than one numerical value can be obtained for some of the parameters of the structural equation

b.

structural coefficient cannot be estimated

c.

unique numerical values of structural parameters can be obtained

d.

unique solution of all the structural coefficients is not possible

## Question 1211

Rural & Urban Development -Issues

Appeared in Year: 2016 (UGC NET)

### Question

MCQ▾

NABARD՚s primary role is

### Choices

Choice (4)Response

a.

To act as a finance institution

b.

To act as a bank

c.

To underwrite shares of govt agencies

d.

To issue shares in the market

## Question 1212

Appeared in Year: 2016 (UGC NET)

### Question

MCQ▾

Trickle Down theory of development holds that

### Choices

Choice (4)Response

a.

Global prosperity spreads to domestic Economy.

b.

Development spreads down wards throughout the economy and in all sectors.

c.

Rate of growth of on economy is independent of the rate of taxation.

d.

Rate of growth of an economy is inversely proportional to the rates of taxation.

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