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“Money and Banking (MGT411)” GDB Solution
#1
Rainbow 
Just For Idea


Suppose there are only 100 goods being produced in a country during a particular year. In the next year the same numbers of goods are produced but the statistics show an increase in the GDP of the country in that year. Can GDP of a country increase without increasing the number of goods being produced in that country? If yes, then how? If, ‘No’ then why?


Nominal GDP can because it is not adjusted for inflation.It only shows the total value of goods produced in the country at current prices. Real GDP, which is adjusted for inflation cannot increase without the number of goods produced increasing.
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#2
Thanks....
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#3
what thanx,,,,,,,,,,,,,, is it incresae or decrese ???????????
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#4
THANKS
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#5
Ans1
FV= 2400000*(1+0.4)8
FV=3284565,721
Ans2

PV = FV/ (1+i)n

PV=3,284,565.721/(1+0.09)8
PV=1,648,412

Ans3

FV = PV*(1+i)n

FV= 2,400,000*(1+0.06)8
FV=3825235
How much invest today when house prices appreciate at the rate of 6% per annum

PV = FV/ (1+i)n

PV=3825235/(1+0.09)8
PV=1919756

Ans4

Considering the fact that the house prices will grow at the rate of
4% per annum
So,
Future Value =3,284,565.721

Being deposit in less risky certificate of deposits earning only 5% p.a. thEN
PV = FV/ (1+i)n
PV=3284565.721/(1+0.05)8
PV=2223123.367

Ans5

house prices will grow at the rate of 4% per annum
Future Value of house after four year is FV=3,284,565.721

Invest in more risky growth stocks earning 12% rate of return
PV = FV/ (1+i)N

PV=3,284,565.721/(1+0.12)8
PV=1326581.006



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