Question
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
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
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