Solve Mcqs No Explanation Please

32.

Consumption expenditure of household depends mainly on theirRequired to answer. Single choice.

borrowing

current income

saving

33.

What happens to MPC as income rises? ___________Required to answer. Single choice.

Increase

decrease

remains same

34.

In order to influence spending on goods and services in the short-run, monetary policy is directed at directly influencingRequired to answer. Single choice.

unemployment rates

inflation rates

interest rates

35.

tight monetary policy aims at preventing inflation by__________Required to answer. Single choice.

expanding money supply

contracting the money supply

36.

Suppose the economy is operating in a recession. If policymakers wished to move output to its long-run natural rate, they should attempt toRequired to answer. Single choice.

shift aggregate demand to the left

shift aggregate demand to the right

shift short-run aggregate supply to the left

37.

Keeping in mind the government policy,Cutting the rate of tax is a tool of which policy?Required to answer. Single choice.

Expansionary fiscal policy

Expansionary Monetary policy

Contractionary fiscal policy

38.

monetary policy is characterized as_____________Required to answer. Single choice.

expansionary policy

contractionary policy

both of the above

39.

.........................is the dollar value of all final goods and services produced within an economy in a given period of time.Required to answer. Single choice.

Gross Domestic Product (GDP)

Gross National Product (GNP)

40.

Consumption Function is also known as.....Required to answer. Single choice.

Propensity to consume

Propensity to save

multiplier

41.

which of the following might be used by government to lower unemployment?Required to answer. Single choice.

Increase government spending

Increase interest rates

Increase taxation

42.

The relationship between the, real interest rate, inflation and nominal interest rate is known as theRequired to answer. Single choice.

inflation equation

fisher equation

none of both

43.

When there are vacancies in the job-market, but also high levels of unemployment, then we could say that this unemployment is?Required to answer. Single choice.

Regional

Cyclical

Structural

44.

In investment demand curve, if interest rate changes it is movement along the demand curveRequired to answer. Single choice.

True

False

45.

For the economy as a whole, income must be equal to expenditureRequired to answer. Single choice.

True

False

46.

fluctuations in price bring uncertainty and instability

to the economyRequired to answer. Single choice.

True

False

47.

The determinants which shift the Investment demand(ID) curve areRequired to answer. Single choice.

technological changes

business tax

both of above

48.

When the economy is experiencing an expansionary gap, the cyclical rate of unemployment is negative Required to answer. Single choice.

False

True