Question Description
Q1: According to the Mundell-Fleming model, what happens when interest rates rise in a small open economy compared to those in other countries?a)The economy experiences a decrease in capital inflows.b)The economy witnesses an increase in capital outflows.c)The economy achieves a balance of payments surplus.d)The exchange rate becomes fixed.Correct answer is option 'B'. Can you explain this answer? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about Q1: According to the Mundell-Fleming model, what happens when interest rates rise in a small open economy compared to those in other countries?a)The economy experiences a decrease in capital inflows.b)The economy witnesses an increase in capital outflows.c)The economy achieves a balance of payments surplus.d)The exchange rate becomes fixed.Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Q1: According to the Mundell-Fleming model, what happens when interest rates rise in a small open economy compared to those in other countries?a)The economy experiences a decrease in capital inflows.b)The economy witnesses an increase in capital outflows.c)The economy achieves a balance of payments surplus.d)The exchange rate becomes fixed.Correct answer is option 'B'. Can you explain this answer?.

Solutions for Q1: According to the Mundell-Fleming model, what happens when interest rates rise in a small open economy compared to those in other countries?a)The economy experiences a decrease in capital inflows.b)The economy witnesses an increase in capital outflows.c)The economy achieves a balance of payments surplus.d)The exchange rate becomes fixed.Correct answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for B Com. Download more important topics, notes, lectures and mock test series for B Com Exam by signing up for free.

Here you can find the meaning of Q1: According to the Mundell-Fleming model, what happens when interest rates rise in a small open economy compared to those in other countries?a)The economy experiences a decrease in capital inflows.b)The economy witnesses an increase in capital outflows.c)The economy achieves a balance of payments surplus.d)The exchange rate becomes fixed.Correct answer is option 'B'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of Q1: According to the Mundell-Fleming model, what happens when interest rates rise in a small open economy compared to those in other countries?a)The economy experiences a decrease in capital inflows.b)The economy witnesses an increase in capital outflows.c)The economy achieves a balance of payments surplus.d)The exchange rate becomes fixed.Correct answer is option 'B'. Can you explain this answer?, a detailed solution for Q1: According to the Mundell-Fleming model, what happens when interest rates rise in a small open economy compared to those in other countries?a)The economy experiences a decrease in capital inflows.b)The economy witnesses an increase in capital outflows.c)The economy achieves a balance of payments surplus.d)The exchange rate becomes fixed.Correct answer is option 'B'. Can you explain this answer? has been provided alongside types of Q1: According to the Mundell-Fleming model, what happens when interest rates rise in a small open economy compared to those in other countries?a)The economy experiences a decrease in capital inflows.b)The economy witnesses an increase in capital outflows.c)The economy achieves a balance of payments surplus.d)The exchange rate becomes fixed.Correct answer is option 'B'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Q1: According to the Mundell-Fleming model, what happens when interest rates rise in a small open economy compared to those in other countries?a)The economy experiences a decrease in capital inflows.b)The economy witnesses an increase in capital outflows.c)The economy achieves a balance of payments surplus.d)The exchange rate becomes fixed.Correct answer is option 'B'. Can you explain this answer? tests, examples and also practice B Com tests.