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As G increases, IS 1 shifts to IS 2 . At new equilibrium e', interest rate also increases and i > i*. Here,2 things are happening: a) there will now be capital inflow as a result capital A/c surplus b) Since, AD and Y increased, import demand will increase which will lead to current A/c deficit. Since, the magnitude of Capital A/c surplus will be much higher than the magnitude of current A/c deficit; there is BOP surplus. As a result domestic currency appreciates; dd for rupee has increased. So, there will be capital inflow which will bring back the interest rate to its original level. As a result, exports decrease and Imports increase (imports have become cheaper) [Net exports falls] IS shifts back to initial level and equilibrium in the goods market is restored. In a small open economy with a floating exchange rate, the supply of real money balances is fixed and a rise in government spending cannot change the interest rate so that net exports must fall to maintain equilibrium in the goods market.
The type of inheritance in which a sex linked gene is inherited from grandfather to grandson through daughter is called as
What type of epithelial tissue is present in the inner lining of the intestine and facilitates absorption and secretion?
The gene is considered the basic unit of inheritance which are passed from parents to offspring. The alternate form of a gene is termed as
Which of the following forms of nitrogen is most prone to leaching?
Mendel chose ………….. pairs of contrasting characters for his study. In all the above crosses he obtained a definite phenotypic ratio of ………...
The moulting hormone in insects is secreted by which part of their body?
The term used in genetics in which an offspring to resemble its parent is known as
Sex-influenced traits are autosomal qualities that are impacted by sex. An example of sex influenced traits is
Crossing over takes place in which stage of cell cycle?
Jaya, a high yielding variety developed in India which outyield both its parent was a cross between