Start learning 50% faster. Sign in now
As G increases, IS 1 shifts to IS 2 . At new equilibrium e', interest rate also increase 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. 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 raises the interest rate, so that income must rise to maintain equilibrium in the money market.
Calculate the bulk density of a 400 cm3 soil sample that weighs 575 g (oven dry weight).
What is the ploidy of primary endosperm nucleus?
In which stage of classical production function, the marginal product is always greater than the average product?
The lower leaves become rusty brown near the base and ultimately dry up in rice due to the deficiency of
The Chairperson and Chief Executive Officer FSSAI have appointed by_____
Which gas is primarily emitted from rice fields?
Yield of crops losses due to weed infestation is:
Eat Right India logo depicts …………. colors that signify the taste as per Ayurveda that are necessary for energetic effects on the mind and body a...
The principle of FIFO adopted in clean food street hub refers to:
Which of the following agriculture commodity are to be known as Shri-Anna?