Import
Chapter 7: Chapter 7 · ECONOMICS · EN medium
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International Economics surplus country which will encourage imports and discourage exports. Fall in prices in the deficit country will encourage exports and discourage imports, leading to restoration of BoP equilibrium. . Interest Rate Adjustments The contraction or expansion of money supply resulting from the BoP deficit or surplus leads to a rise or fall in the interest rates. A rise in interest rate in the deficit country will encourage investors to withdraw their funds from abroad and invest in their home country. The opposite happens in the surplus country.
📖 Class 12 Economics English Medium 2024 Edition www.tntextbooks.in · Page 144
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International Economics surplus country which will encourage imports and discourage exports. Fall in prices in the deficit country will encourage exports and discourage imports, leading to restoration of BoP equilibrium. . Interest Rate Adjustments The contraction or expansion of money supply resulting from the BoP deficit or surplus leads to a rise or fall in the interest rates.
A rise in interest rate in the deficit country will encourage investors to withdraw their funds from abroad and invest in their home country. The opposite happens in the surplus country.
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