In a small open economy with a floating exchange rate, the supply of real money balances is fixed and a rise in government spending ______
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.
According to the APEDA Act, which of the following is included in the second schedule?
Which classification class of Chrysanthemum is characterized by blooms that are globular, somewhat flat in the young stage, or small button type?
Soil colloidal particle shows the phenomena
The assessment of nutrient supply capacity is called as soil
It is a pest when it is a larva, feeding on crops as it grows in size till it pupates and remains dormant from August till end of May.
Which of the following crop is incorrectly matched with its water requirement?
________is a practice of growing strip of crops having poor potential for erosion control (e.g. root crop, cereals) alternated with strips of crops havi...
What is the term used for the asexual fruiting bodies produced by fungi?
When farmer retains a smaller quantity of the crop than his actual requirements for family and farm needs then:
Optimum condition for the spread of Ergot disease of bajra is