Question
Under a fixed exchange rate system with perfect capital
mobility, what happens when the government increases its spending?Solution
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.
Select the correct combination of mathematical signs that can sequentially replace the ‘*’ signs and balance the given equation.
16 * 5 * 35 ...
4 – 10 × 5 + 9 ÷ 3 = 51
Select the correct combination of mathematical signs that can sequentially replace '*' sign and balance the equation given below.
90 * 5 * 15 * 2...
If the ‘-’ and ‘×’ are interchanged, What will be the value of the following equation?
34 × 22 + 192 ÷ 12 – 8
...Select the correct sequence of mathematical signs that can sequentially replace the ‘#’ signs and balance the given equation.
56 # 8 # 4 # 32...
If '@' means ' X ', '$' means '-', '#' means '÷', and '%' means '+', then what is the value of the expression: [75 % {(169 $ 15) # 11} @ 8]
87 D 29 A 12 B 5 C 9 = ?
If '$ means +', '# means –, '@ means ×' and '* means ÷', then what is the value of ' 16 $ 4 @ 5 # 72 * 8 ' ?
...Which sequence of mathematical symbols among given sequences must be inserted in place of the (?) in order to obtain the desired result?
(250 ? 7...
'!' means '÷', '$' means ' X ', '#' means '+' and '&' means '-' then what would be the value of the expression given below?
Expression: 63 $ ...
