Login / Signup

Question

In an open economy with free capital flows, the central bank can

A Stabilize the exchange rate by setting the rate of interest appropriately

B Stabilize the rate of interest by setting the exchange rate appropriately

C Either set the rate if interest or stabilize the exchange rate, but not both

D Neither stabilize the rate of interest nor the exchange rate

Practice Next

More Research Questions

What are the potential consequences of high multicollinearity in a multiple regression model?
Calculate Disposable income: Consumption (C) = 300 Investment (I) = 50 Government purchases (G) = 70 Government transfer payments (TP) = 15 Taxes (T) ...
Consider the game:   What is the dominant strategy of the game?
As per the Economic survey 2023-24, what has been identified as a major challenge for India's business services sector in the future?
According to the Economic Survey 2025-26, which correctly describes the state-level inflation situation?
In the Solow Growth Model, if an economy is at its steady state and there is an increase in the savings rate, what happens in the long run?
A fictional economy “Wonderland” reports the following data (in ₹ crore): Private Consumption (C) = 800; Government Expenditure (G) = 200; Gross Investment...
In a government budget, revenue deficit is Rs. 50000 crores and borrowing are Rs. 75000 crores. The fiscal deficit will be:
A monopoly firm has the following demand and cost function Q = 50-P Total Cost = 20 + 2Q + 3Q2 Government imposes an excise tax @Rs.5 per unit. What is ...
If factor cost is greater than Market price, then it means that:

Hey! Ask a query

ask-question