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.
Which vegetable is propagated through cuttings?
Which compound is responsible for imparting the red color to tomatoes and is also a powerful antioxidant beneficial to human health?
Where is the Central Tuber Crops Research Institute located?
What is the function of the pigment betalain found in beetroot, and how does it differ from anthocyanins?
Parasitic weed in sorghum crop is
Which vegetable crop has a tuberous hypocotyl and root portion forming the edible part, and is classified under family Brassicaceae?
Curd is the economical part of which of the following vegetable?
The highly pungent aroma in garlic is due to the presence of which sulfur-containing volatile compound?
For one hectare of garlic cultivation, approximately how much planting material is required to ensure optimal bulb development and plant population?
Which vegetable crop has natural resistance to both drought and soil salinity, and is therefore suitable for marginal lands?
