MCQ Bank
Prize bond is the example of:
- A) Balanced debt.
- B) Floating debt.
- C) Unfunded debt.
- D) Permanent debt.
Market loan is the example of ----------debt.
- A) Floating
- B) Unfunded
- C) Floating and unfunded
- D) Permanent
Monetary policy is ---------on output under -------------exchange rate.
- A) More effective; real
- B) Totally ineffective; floating
- C) Totally ineffective; nominal
- D) More effective; floating
As risk premium increases, interest rate --------, money demand --------- and LM* curve shifts rightward.
- A) Decreases; decreases
- B) Increases; decreases
- C) Increases; Increases
- D) Decreases; increases
Trade policy is --------on output under-----------exchange rate.
- A) More effective; real
- B) Totally ineffective; floating
- C) More effective; floating
- D) More effective; real
People base their expectations of future inflation on recently observed inflation is known as:
- A) Expectations.
- B) Rational expectations.
- C) Adaptive expectations.
- D) Negative expectations.
When real exchange rate rises, exports will--------and imports will -----------
- A) Increase; Increase.
- B) Decrease; decrease.
- C) Decrease; increase.
- D) Increase; decrease.
Which one of the following is the reason for sticky price?
- A) Production process
- B) Location of the firm
- C) Taste of the consumer
- D) Menu cost
Which one of the following is the example of floating debt?
- A) Treasury Bills .
- B) GP Fund.
- C) Prize Bonds.
- D) Income tax bonds.
Nominal wage = target real wage multiply by------------
- A) Expected price level.
- B) Labor.
- C) Price.
- D) Quantity.
Monetary policy is -------on output under-------------exchange rate.
- A) Totally ineffective; fixed
- B) More effective; real
- C) Totally ineffective; nominal
- D) More effective; fixed
When tax decreases then the disposable income (Yd) ----------and consumption---------
- A) Increases; increases
- B) Decreases; decreases
- C) Decreases; increases
- D) Increases; decrease
The primary result of inflation is a decline in the real value of --------
- A) Money.
- B) Product.
- C) Gold.
- D) Prices.
The accumulation of all ------------is known as government debt.
- A) Present deficits
- B) Past annual deficits
- C) Past annual surplus
- D) Annual surplus
Inflation resulting from ----------- is known as demand pull inflation.
- A) Supply shocks
- B) Supply
- C) Demand shocks
- D) Negative investment shock
When tax increases then disposable income (Yd) ----------and consumption---------
- A) Decreases; increases.
- B) Increases; increases
- C) Decreases; decreases.
- D) Increases; decreases.
In the Mundell Fleming model, LM* curve equation is----------
- A) M/P = L(r*, Y).
- B) M/P = L +(r* + Y).
- C) M/P = L(r* + Y).
- D) M/P = L(r* - Y).
Which one of the following statement is true?
- A) Aggregate demand has negative slope.
- B) IS curve is vertical.
- C) Aggregate demand is horizontal.
- D) Aggregate demand is vertical.
GP funds is the example of --------
- A) Balanced debt.
- B) Unfunded debt.
- C) Permanent debt.
- D) Floating debt.
If the -------------is not changing, it means that budget is balanced.
- A) Government debt
- B) Nominal government debt
- C) Real government debt
- D) Nominal government surplus