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In a fixed exchange rate system with perfect capital mobility, an increase in government spending shifts the IS curve to the right, increasing output and the interest rate. However, because capital is perfectly mobile, the higher domestic interest rate would attract foreign capital, leading to upward pressure on the exchange rate (appreciation). To maintain the fixed exchange rate, the central bank intervenes by increasing the money supply, which shifts the LM curve to the right, lowering the interest rate back to the world interest rate.
Alcoholic (OH) group can be identified by
Taj Mahal is greatly affected due to:
Bakelite is a copolymer of Phenol and
The most abundant constituent of atmospheric air is
Ozone layer is present in
Which one of the following is an example of a gel?
Brass is made of
A powerful eye irritant present in smog is
Which mineral is the ore Of aluminium?
Wood spirit is