# DSE 2013 Answer Key is posted

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## DSE 2013 Answer Key is posted

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## Re: DSE 2013 Answer Key is posted

 thanku sir :) but how come the ans in 33q is e) N 1-r/ (1+r)^2 there is no such option ?
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## Re: DSE 2013 Answer Key is posted

 Administrator Hi Akanksha, Actually, none of the given options is correct for this problem. So, I provided the correct answer listing it as option (e). Amit
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## Re: DSE 2013 Answer Key is posted

 Thank You Amit Sir :-)
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## Re: DSE 2013 Answer Key is posted

 In reply to this post by Amit Goyal Sir, when we are faced with such a question in exam where none of the options seem correct we do get marks for leaving it blank, right?? We obviously don't take a guess in DSE but in other exams if we guess and mark an option which looks relatively closer to the answer we're getting, will we lose marks for answering a question which was supposed to be left blank in such a case? Amit Goyal wrote Hi Akanksha, Actually, none of the given options is correct for this problem. So, I provided the correct answer listing it as option (e). Amit
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## Re: DSE 2013 Answer Key is posted

 In reply to this post by Amit Goyal Amit Sir, in ques32, if x1=1/2 then x2=1-(1+r)*1/2 And if r= 1/ÃŸ-1 then x2=1-1/2ÃŸ And if ÃŸ<1/2, x2 will be negative ! Then why are we not considering this? Please help me Sir....
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## Re: DSE 2013 Answer Key is posted

 In reply to this post by Amit Goyal pls explain ques 24
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## Re: DSE 2013 Answer Key is posted

 Thanks a lot sir :)
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## Re: DSE 2013 Answer Key is posted

 @vaibha..for 54..C=0.25 and res=0.2  hence money multiplier is 2.77 right?....so the increase in money supply comes to 5555 right..then where am i going wrong? please help
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## Re: DSE 2013 Answer Key is posted

 @kangkan....the multiplier is 2.509...
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## Re: DSE 2013 Answer Key is posted

 HOW DID U FIND THE MULTIPLIER VAIBHAV..I M ALSO GETTING 2.77
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## Re: DSE 2013 Answer Key is posted

 Sir can you plz explain q 32 and 33
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## Re: DSE 2013 Answer Key is posted

 In reply to this post by akanksha In Question number 54, C=0.25x, D=0.75x, and R/D=0.20, also C/D=0.25/0.75, now money multiplier=(C/D+1)/(C/D+R/D)=[(0.25/0.75)+1)/(0.25/0.75)+0.20)]=0.25...so increase in money supply=2000*2.5=5000 units.  "I don't ride side-saddle. I'm as straight as a submarine"
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## Re: DSE 2013 Answer Key is posted

 @subhyana..able and bernanke defines Cash reserve ratio as Reserve/Deposit and Currency Deposit ratio as Currentcy /Depsoit...Now accd to this book money multiplier is Cu/Dep+1/  Cu/Dep + Res/Dep.... isnt Cu/Dep=0.25 and and Res/Dep= 0.20 right?
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## Re: DSE 2013 Answer Key is posted

 R/D is 0.20...but C/D is 0.25/0.75..this is because if x is total money in circulation then according to the question the amount people hold as currency is 25% of x=0.25*x, similarly D=0.75*x..so C/D=0.25/0.75..!!!!!  "I don't ride side-saddle. I'm as straight as a submarine"
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## Re: DSE 2013 Answer Key is posted

 so there is a diff between cash and currency?
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## Re: DSE 2013 Answer Key is posted

 Consider in this way..people hold 25% of the total money in circulation as cash/currency and 75% as demand deposits...in this case Cu=0.25*x and D=0.75*x..so Cu/D=0.25/0.75..it remains the same...!!!!  "I don't ride side-saddle. I'm as straight as a submarine"
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## Re: DSE 2013 Answer Key is posted

 Hi Question 49:Heteroskedascity Accd to the big formula in gujrati(Appendix of chapter 11 page 434),the estimated vale of Sigma Hat is an unbiased estimator of sigma regardless of its relation to X(i)...but accd to answer key of of Amit Sit,it is option C...am i interpretting the the result wrongly?
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## Re: DSE 2013 Answer Key is posted

 The OLS estimates will be unbiased in case of heteroscedasticity..also the estimated standard error terms will be unbiased..this is because the standard error terms will be biased if there is Multicolinearity...in that case the standard error will be infinite and the estimated coefficients will be indeterminate..so unbiasedness of standard error is related to Multicolinearity i guess..!!!  "I don't ride side-saddle. I'm as straight as a submarine"