Ifinflation is higher in country A than in Country B, and the exchange – InterviewSolution

1.	Ifinflation is higher in country A than in Country B, and the exchangerate between the two countries is fixed, what is likely to happen tothe trade balance between the two countries?
Answer» If inflation is higher in country A than in Country B, and the exchange rate between the two countries is fixed, what is likely to happen to the trade balance between the two countries?

Discussion

No Comment Found

Related InterviewSolutions

Which among the following statement(s) is/are correct about Asian Infrastructure Investment Bank (AIIB)? Code:
'Self-employment is more in rural areas than in urban areas'. Do you agree? Give reasons.
Suppose a TV was manufactured 5 years ago in 2013, and it had a market value of 50,000. However, demand for TVs was very low and so it was left unsold. Now, in 2018, it is sold for a market price of 80,000. What amount is added to the GDP of the economy in 2013 with respect to this single TV?
Briefly discuss the industrial development pattern on the eve of Independence.
Q14. Which of the following is to organize the traditional industries and artisans into clusters to make them competitive and provide support for their long-term sustainability by way of enhancing the marketability of products, improving the skills of artisans, making provision for common facilities and strengthening the cluster governance systems?
Explain the lender of last resort function of the central bank.
Find the approximate value of f(5.001), where f (x) = x3 − 7x2+ 15.
Stringent measures adopted to cut down spending in order to overcome fiscal burden is called ___
What is actually GDP ?
What were the major differences in the approach towards development at the time of Independence? Has the debate been resolved?