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.
Which of the following statements is true about the Competition Commission?
I.The Competition has been established to prevent practices which do ...
Any individual aged between 18 years to _________ years are eligible to apply for Pradhan Mantri Suraksha Bima Yojana.
When the RBI wants to inject liquidity into economy, it may adopt the following :
(1) Buy the government securities from the banks.
(2) En...
What is Investment?
The Cash Reserve Ratio refers to?
A market in which there are large numbers of sellers of a particular product, but each seller sells somewhat differentiated but close products is termed...
Which of the following payment is not considered a Transfer payment ?
Consider the following statements regarding ‘IBSA Grouping’:
1.   It is a developmental initiative between India, Bangladesh and South Af...
Which one of the following countries is not a founding member of the New Development Bank?
What is the Minimum Support Price (MSP) for wheat per quintal for the 2024-25 marketing rabi season?