Q. During inflation:
✅ Correct Answer: (A)
Lenders lose, borrowers gain
Business Economics Macro MCQs and Notes
Q. According to Keynes, demand for money is affected by:
✅ Correct Answer: (D)
Both (a) & (b)
Q. Under normal circumstances, the velocity of circulation of money in a country is:
✅ Correct Answer: (C)
Less than 10
Q. Inflation is a situation when:
✅ Correct Answer: (B)
General price level rises continuously
Q. Inflation can be controlled by applying:
✅ Correct Answer: (A)
Monetary and fiscal policies
Q. Which one is equation of exchange?
✅ Correct Answer: (A)
PT = MV
Q. When the nation's money supply is Rs. 1200 billion and GDP is Rs. 4800 billion, velocity of circulation money is:
✅ Correct Answer: (B)
4
Q. When value of money falls, they benefit more:
✅ Correct Answer: (D)
Debtors
Q. The equation of exchange PT = MV was given by:
✅ Correct Answer: (A)
Fisher
Q. Velocity of circulation of money means the number of times a unit of money
✅ Correct Answer: (C)
Changes hands annually