As per Walras' law the sum of excess demand for money, bonds and current output must be equal to ______.
Walras' law states that the price-weighted value of excess demands sums to zero as a budget identity. With all three demands expressed in common value units, the requested…
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As per Walras' law the sum of excess demand for money, bonds and current output must be equal to ______.
Answer and explanation
Correct answer B
Walras' law states that the price-weighted value of excess demands sums to zero as a budget identity. With all three demands expressed in common value units, the requested sum is zero. Unweighted physical quantities cannot generally be added.
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UGC NET Economics