Question
According to the Mundell-Fleming model, what will happen
in the short run if an expansionary fiscal policy is undertaken under flexible exchange rates and perfect capital mobility?Solution
According to the Mundell-Fleming model, in the short run, if an expansionary fiscal policy is undertaken under flexible exchange rates and perfect capital mobility, national income remains unchanged and the exchange rate appreciates. This is because the fiscal expansion leads to capital inflows, which cause the currency to appreciate, offsetting the expansionary effect on income.
Which one of the following statements is not correct about the nature of India's federal system ?
How many types of emergencies are recognized under the Indian Constitution?Â
Who are entitled to be paid bonus under the Banking Companies (Acquisition & Transfer of Undertaking) Act, 1980?
Which of the following States has/have bicameral legislature?
1. Andhra Pradesh
2. Telangana
3. Bihar
4. Uttar Pradesh
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 1. It provided for the establishment of a public service co...
The First Budget of Independent India was presented by
The Vice-President of India is elected for a term of ______ years.
Which of the following is not correct with reference to the rights guaranteed under the Right to Freedom of Religion?
