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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.
Which Indian ministry collaborated with LEAD at Krea University to create a new inventory of knowledge products in October 2024?
Consider the following statements:
1. Recently, researchers discovered a new species of jumping spider from Shendurney Wildlife Sanctuary
<...Which mountain range geographically separates North and South India?
Recently the 2023 edition of the Annual Joint HADR Exercise, CHAKRAVAT, is being hosted by which country?
‘My Music, My Life’ is an autobiography by which of the following Indian musicians?
Which consecutive year did Max Verstappen win the Canadian Grand Prix in 2024?
Lord Curzon introduced the Indian Universities Act in which year?
What is the projected state's share in central taxes for the fiscal year 2023-24 (Budget Estimate)?
The 5th meeting of the ASEAN-India Trade in Goods Agreement (AITIGA) joint committee took place in which city?
Who was the first Indian to be elected as the leader of the Communist International in 1920?