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.
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By rearranging the letters of ‘PNTERACOIJ’, we can get an English meaningful word. Each letter is denoted with a different number as shown in the ta...
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Find the number of triangles in the given figure:
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How many male people live above the floor on which A lives?
If 'B' is coded as '4' and 'BALL' is coded as '44', then how will 'BALLOON' be coded?
In a class of 25 students, a girl is ranked 10th. When two girls joined, her rank was dropped by one. What is her new rank from the end?