Question
Assume a small open country under fixed exchanges rate
and full capital mobility. Prices are fixed in the short run and equilibrium is given initially at point A. An exogenous increase in public spending shifts the IS curve to IS'. Which of the following statements is true?Solution
In the short run, output increases and so does money demand. The central bank must supply the money demanded at the prevailing interest rate i=i* . Since an autonomous monetary policy is not feasible, the TR curve is irrelevant.
Odd one out
If + means −, − means ×, × means ÷, and ÷ means +, what will be the value of the following expression?
3 ÷ 6 + 3 – 4 × 4 = ?
...Select the word-pair in which the two words are related in the same way as are the two words in the following word-pair.
Butterflies : Lepidopterist
In the question, assuming the given statements to be true, find which of the conclusion (s) among given two conclusions is/are definitely true and then...
John starts walking in a straight line towards the north direction. After walking 6m, he takes a left turn. After walking 8m, he turns right, and stops ...
What comes in place of ___(A)___?
Question: Four people, A, B, C and D, are sitting in a straight line, facing south. Who is sitting at the right end?
Statements:
(I) O...
Select the option figure in which the given figure is embedded (rotation is NOT allowed).
Point T is in which direction with respect to point P?
Odd one out
