Question
If the fiscal deficit of an economy be 3% of GDP and if
the current account deficit also be 3% of GDP in a particular year for that economy, then its aggregate saving must be equal to aggregate investment. The above statement isSolution
The given statement is true. Fiscal deficit is equal to the borrowings made by the government and current account deficit signifies the excess of imports over exports. Borrowings of government will increase money supply by 3% and the current account deficit will decrease money supply by 3%. So, the economy will be at equilibrium and AD = AS or S = I.
The hybrid citrus variety ‘Kinnow’ was developed by which of the following citrus breeders?
The floral mechanism known as cleistogamy, which ensures self-pollination, is beneficial under which condition?
Curcuma longa belongs to the family
Which of the following vegetable crop is rich in Vitamin C?
What is the ideal temperature range for cut rose storage in cold chambers?
What is the membrane around the vacuole known as?
Tungro disease of rice is transmitted by:
In dryland farming areas, conservation tillage techniques are promoted primarily to achieve which of the following outcomes?
Vermiculite is created by the industrial heat-processing of:
The mutant variety of Carica papaya is :
