Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Q. Under fixed exchange rate, show using a figure, the effects of an expansionary fiscal policy. Show the equilibrium under a flexible exchange rate. Discuss the difference in the two regimes.
Answer: An expansionary monetary policy shifts the DD curve to the right. In flexible exchange rate point 2 in the figure is the balance e decreases (appreciates) and Y goes up. The picture is more complex under fixed exchange rate though since E can't change. Output is going up as a result of the financial expansion and therefore the demand for domestic money increases.
To prevent the enlarged money demand from increase domestic interest rate above R* and with the appreciation of the currency the central bank must buy foreign assets with domestic money and thus increase the money supply. The AA shifts near the right until E is restored to the initial fixed exchange rate E0 at point 3 in the figure.
Thus under fixed exchange rate Y will enhance by more than under a flexible exchange rate regime. Dissimilar monetary policy fiscal policy is able to be used to affect output under a fixed exchange rate. A central bank is obligatory to expand the money supply through foreign exchange purchases.
An organ pipe which is open at both ends resonates at its fundamental frequency. Neglecting any end effects, what wavelength is formed by this pipe in this mode of vibration i
Planck equation The quantum mechanical equation relating to the energy of a particular photon E to its frequency nu: E = h nu.
Q State Kirchoff's first law in electricity? Kirchoff's first law (current law) the algebraic total of the currents meeting at any junction in a circuit is zero. This law
what is the reason of gravity?
In a Newton's ring experiment the diameter of n th ring is 0.46 cm it got shrink to a diameter of 0.40 cm when a liquid is given between the plane glass plate and Plano convex len
Why does heated air expand? Temperature is often explained as the average thermal energy of the substance at hand. Therefore the hotter a substance is the more thermal energy i
tell me in detail about inkjet printer???
Define the construction of ultrasonic magnetostriction method. Construction: The ends of the ferromagnetic rod A and B are wound through the coils L 1 and L as given in fi
Ask question how to write newtons rings in c programming #Minimum 100 words accepted#
To develop the correct mathematical explanation of the distribution of radiated energy of a blackbody with respect to wavelength for a given temperature. Planck found it essent
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd