Question
Identify the correct statements. A. If the Repo
Rate goes up, money from other countries will come into the country. B. If the Repo Rate goes down, money will come into the country from other countries. C. There is no relation between the Repo Rate and inflow of foreign funds in India.Solution
Repo Rate high means interest rates are high and money will become costlier and there will be lesser capital expenditure from the corporates and which will reduce the pace of growth.
The theory of purchasing power parity says that       .
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Â
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