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.
If 4 sin² θ = 1 and θ is an acute angle, then the value of cos² θ + tan² θ = ________.
Among the following who are eligible to benefit from the “Mahatma Gandhi National Rural Employment Guarantee Act”?
Which of the following develops immune system in the body?
Andaman and Nicobar Islands people belong to the following ?
Which of the following statements is/are correct regarding national pension system?
     I.       NPS is a government-sponsored pen...
Consider the following statements:
- India launched "Operation Karuna" to assist Myanmar
- Cyclone Mocha was r...
Who founded the Rahnumae Mazdayasne Sabha to renovate the Zoroastrian religion?
Three of the following four letter-clusters are alike in a certain way and one is different.
Pick the odd one out.
Navegaon-Nagzira Tiger Reserve (NNTR), recently seen in the news, is located in which state?
Who amongst the following has not been associated with the Bhakti movement in India?
