Economics MCQs

Page No. 247

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 ?


aNone of these answers


bdecrease the quantity demanded of money


cincrease the quantity demanded of money


ddecreases the demand for money



Which of the following best describes how an increase in the money supply shift the aggregate demand curve ?


aThe money supply shifts right prices fall spending increases and the aggregate demand curve shifts right


bThe money supply shifts right the interest rate rises investment decreases and the aggregate demand curve shifts left


cThe money supply shifts right the interest rate falls, investment increases, and the aggregate demand curve shifts right


dThe money supply shifts right, prices rise, demand curve shifts left



Which of the following statements about stabilization policy is not true ?


aMany economists prefer automatic stabilizers because they affect the economy with a shorter lag than activist stabilization policy


bNone of these answers are true


cLong lags enhance the ability of policy makers to fine tune the economy


dWhen policy makers implement activist stabilization policies there is a significant risk that their policies may actually have a destabilizing effect



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 seen a demonstration of ?


aThe multiplier effects


bsupply side economics


cNone of these answers


d The crowding out effect



Which of the following statements regarding taxes is correct ?


aMost economists believe that in the short run the greatest impact of a change in taxes is on aggregate supply, not aggregate demand


bAn increase in taxes shifts the aggregate demand curve to the right


c A decrease in taxes shifts the aggregate supply curve to the left


dA permanent change in taxes has a greater effect on aggregate demand than a temporary change in taxes.



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 ?


adecrease government spending Which the shifts the aggregate demand curve to the left


bdecrease taxes, which shifts the aggregate demand curve to the right


c decrease taxes, which shifts the aggregate demand curve to the left


d decrease government spending which shifts the aggregate demand curve to the right



If the marginal propensity of consume MPC is 0.75 the value of the multiplier is ?


a 4


b7.5


c5


d0.75


View Answer 4

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 ?


a Increase government spending and decrease taxes


bdecrease the money supply


cdecrease government spending and increase taxes


ddecrease interest rates



In the market for real output, the initial effect of an increase in the money supply is to ?


a shift the aggregate supply curve to the right


bshift the aggregate supply curve to the left


c shift the aggregate demand curve to the left


d shift the aggregate demand curve to the right



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 ?


a shifts money demand to the right and increases the interest rate


bNone of these answers


cshifts money demand to the right and decreases the interest rate


d shifts money demand to the left and increases the interest rate



Goto Page No.

Page 247 of 444

Alphabetical MCQs Categories

Here below You find all kind of categories of MCQs in alphabetical order.


"Comprehensive Collection of MCQs: Alphabetically Organized by Subject"

"Discover an extensive collection of multiple-choice questions (MCQs) neatly categorized by subject from A to Z. This resource is designed for anyone eager to explore various topics in a straightforward and organized manner. Whether you're a student preparing for exams, an educator seeking supplementary materials, or simply curious about different subjects, this compilation offers a convenient way to learn and assess your knowledge. With questions arranged alphabetically, navigation is effortless, allowing you to delve into subjects of interest at your own pace. Engage, learn, and expand your understanding with this accessible and comprehensive repository of MCQs!"


BolPakistan

bolpakistan.com.pk includes Job Mcqs and Pak Mcqs is the Top Largest Mcqs Forum in World, in which you can read Mcqs of All Subjects, PPSC test preparation, FPSC, NTS and PPSC PAST PAPERS, PPSC PAST MCQS. A Collection of Repeated MCQs for JOBs seekers.

Copyright © 2024, Designed & Developed by BolPakistan