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.
Who became the winner of the Pulitzer Prize 2022?
The first meeting of the G -20 was held recently in which of the following state/ UT?
 In which of the following states/ut the Union Minister Sarbananda Sonowal has inaugurated the ‘Ayush Utsav’ recently?
India Post Payment Bank and which of the following insurance companies have tied up in July 2022 to provide accidental guard policy to the bank custome...
Who is awarded with the SASTRA Ramanujan Prize 2022?
How many Puranas are there according to Hindu tradition?
Who won the Formula 1 Hungarian Grand Prix 2024 in Mogyoród, Hungary?
Which country has set the record of having the longest passenger train in the world?
The first session of Uttar Pradesh Legislature was commenced on which date?Â
Who is the Author of the book ‘The Maverick Effect’?