Page 47 - DECO402_Macro Economics

Macroeconomic Theory

Notes 5. Being difference between personal savings of item income and expenditure is one ...............
(a) Balanced item (b) Unbalanced item
(c) Balance income (d) Unbalanced income.
6. When personal income is more than expenditure, less and same then item can be ................
(a) positive (b) positive, Negative
(c) zero (d) negative

4.4 Foreign or Other Sector

The account is present the income and expenditure of external sector within it. In further table the
account is present in net terms of external sector. The left hand side of this account is present the net
residual fraction of the flow of in and out of country of continue production of services and things. If
net flow is in the under of country then it present by the positive sign. The export price of services of
things of country is 39,00 lacs rupees. It is the part of net national production. The payment of these
exports is doing as net foreign investment of people.

Account of income and expenditure of foreign and
other sector 1991-92
(Money in lacs)
Rupees Rupees
1. Wages and complementary Net foreign Investment
income 100 3900
2. Profit from foreign branch 100
3. Recieve income and total and
pure production 200
4. The specific purchase
transaction
(i) From bussiness 4,000
(ii) From government - 200
(iii) From people - 100

3700
5. Pure Export
3900

Did You Know? The accounts are present of income and expenditure as private sector within
government sector.

4.5 Gross Saving and Investment Account

Within it total saving and investment related all description is given which is related economy. In
every field has one residual money in above four fields which is the saving of that special field. In
other items where the account present in table both side the income and expenditure, the item of

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