Economics - Macroeconomic Policy Tools
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This is The MCQs of Economics
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Question 1 of 19
1. Question
Keyness liquidity preference theory of the interest rate suggests that the interest rate is determined by:
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Question 2 of 19
2. Question
When money demand is expressed in a graph with the interest rate on the vertical axis and the quantity of money on the horizontal axis an increase in the interest rate:
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Question 3 of 19
3. Question
When supply and demand for money are expressed in a graph with the interest rate on the vertical axis and the quantity of money on the horizontal axis an increase in the price level
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Question 4 of 19
4. Question
For the Eurozone countries, the most important source of the downward slope of the aggregate demand curve is probably:
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Question 5 of 19
5. Question
In the market for real output, the initial effect of an increase in the money supply is to:
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Question 6 of 19
6. Question
The initial effect of an increase in the money supply is to:
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Question 7 of 19
7. Question
The long-run effect of an increase in the money supply is to:
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Question 8 of 19
8. Question
Suppose a wave of investor and consumer pessimism in the USA causes a reduction in spending If the US federal Reserve (Which has a broader remit than the Bank of England Which is charged only with controlling inflation) chooses to engage in activist stabilization policy it should:
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Question 9 of 19
9. Question
The initial impact of an increase in government spending is to shift:
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Question 10 of 19
10. Question
If the marginal propensity of consume MPC is 0.75 the value of the multiplier is:
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Question 11 of 19
11. Question
An increase in the marginal propensity to consumer (MPC):
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Question 12 of 19
12. Question
Suppose a wave of investor and consumer optimisms has increased spending so that the current level of input exceeds the long-run natural rate If policy makers choose to engage in activist stabilization policy they should:
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Question 13 of 19
13. Question
When an increase in government purchases raises incomes shifts money demand to the right raises the interest rate, and lowers investment we have seen a demonstration of:
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Question 14 of 19
14. Question
Which of the following statements regarding taxes is correct?
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Question 15 of 19
15. Question
Suppose the government increases its purchases by Rs16 billion. If the multiplier effect exceeds the crowding out effect then:
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Question 16 of 19
16. Question
When an increase in government purchases increases the income of some people, and those people spend some of that increase in income on additional consumer goods, we have ween a demonstration of
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Question 17 of 19
17. Question
Which of the following is an automatic stabilizer?
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Question 18 of 19
18. Question
Which of the following statements about stabilization policy is not true?
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Question 19 of 19
19. Question
Which of the following best describes how an increase in the money supply shift the aggregate demand curve?
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