Rest other options, RBI as an organisation decides it. (MPC isn't pure RBI org, is a separate body and has members from outside as well)
» show previous quotes» hide previous quotes@oldrustyagain29523 yeah you have the values correct, but GCF of 28-29 means 28-29% of GDP and 32-33 would mean 32-33% of GDP. Since India’s GDP is much greater, GCF of India would be higher than GCF of Bangladesh.Or am I making a simple error I’m not able to see here
See i would suggest to look into it the other way. If you are aware that Bangladesh is growing at much higher rate than India ...then it means the GCF formation is more of Bangladesh than India.
GDP is sum of goods and services produce. Using GCF/GCFC it produces both capital and consumption goods. Now the more capital goods is produced the more GCF / capital stock will be accumulated. This further surge the GDP. But the other way round is not true . Eg: GDP is increasing in nominal terms but GDP growth rate would be decreasing.
In short GCF is increasing then GDP will increase for sure but GDP increasing then it may be that GCF is not increasing that much compared to consumption goods production. You may consider the following relation GCF:Investment: capital goods produced
When we talk about federation , we put American federation at the highest pedestal and its ideal as well - maybe one of the reason is because its oldest. But as American federation is destructible union of destructible states , I beleive its not neccessary for a federation to be indestructible in nature.
Please explain option 'c' and 'd'
Repeal of progressive farm laws proves how India was rightly called a 'soft state'. I hope this doesn't set a precedent for aggressive street behavior.
More worrying part is the approach any future government would take on reforms that has wide impact (equally positive and negative)
Goes on to show that process of implementation is as equally important as the content of reforms. That’s the lesson here not the actual reform part, which in any case, many would agree that it was needed with some modifications.
One can only wonder if they had taken a different approach, would this reform be successfully implemented. But you would have to assume everyone acts rationally which is not the case most of the time (read political considerations)
