Answer of 18th question should be b because decrease in interest rate will lead to increase in production and it will lead to more export and more income from abroad and it will lead to correction of bop deficiet
Kindly recheck the answer of question no. 16. The answer i think should be D. Because Marshall Learner approach says elasticity of demand for export and import to be greater than one not supply.
No answer sahi woh Condition hai hai when devalution say kb bop improve hoga,,,bt it's in assumption of ml that demand n supply is perfectly elastic,,not taking abt price elasticity,much difference between two
when exchange rate is fall means our export will be cheaper... for foreigners as they have to pay less for more goods.. in case of import we have to pay more since..our currency value is lowered compared to foreigners...
