Macroeconomics Theories and Policies 1 MCQs and Notes

V

Vikash Gupta • 33.56K Points
Instructor I

Q 1. The interest rate paid on bonds is known as:

(A) call rate
(B) coupon rate
(C) repo rate
(D) bank rate

P

Priyanka Tomar • 35.28K Points
Coach

Q 2. Market does not clear is a proposition of:

(A) neoclassical theory.
(B) keynesian economics
(C) monetarism
(D) rational expectations

R

Rakesh Kumar • 28.44K Points
Instructor II

Q 3. Employment equilibrium in the Classical theory is achievedthrough:

(A) wage-price flexibility.
(B) changes in aggregate demand
(C) changes in aggregate supply
(D) none of these.

V

Vijay Sangwan • 28.62K Points
Instructor II

Q 4. Who invented the General Equilibrium analysis?

(A) l. walras.
(B) w. leontief
(C) j.m.keynes.
(D) none of these.

R

Rakesh Kumar • 28.44K Points
Instructor II

Q 5. In the long-run ISLM model, the long-run effect of a fall in net exports is to

(A) increase real output and the interest rate.
(B) increase real output and not affect the interest rate.
(C) not affect real output and increase the interest rate.
(D) not affect real output and reduce the interest rate.

P

Priyanka Tomar • 35.28K Points
Coach

Q 6. In the long-run ISLM model, the long-run effect of an autonomous increase in investment is to

(A) increase real output and the interest rate.
(B) increase real output and not affect the interest rate.
(C) not affect real output and increase the interest rate.
(D) not affect real output and reduce the interest rate.

S

Shiva Ram • 30.44K Points
Instructor I

Q 7. In the long-run ISLM model, the long-run effect of a tax cut is to

(A) increase real output and the interest rate.
(B) increase real output and not affect the interest rate.
(C) not affect real output and increase the interest rate.
(D) not affect real output and reduce the interest rate.

G

Gopal Sharma • 38.32K Points
Coach

Q 8. In the long-run ISLM model, the long-run effect of a cut in government spending is to

(A) increase real output and the interest rate.
(B) increase real output and not affect the interest rate.
(C) not affect real output and increase the interest rate.
(D) not affect real output and reduce the interest rate.

P

Priyanka Tomar • 35.28K Points
Coach

Q 9. Factors that cause the IS curve to shift include

(A) changes in autonomous consumer spending.
(B) changes in government spending.
(C) changes in investment spending related to a change in the interest rate.
(D) only (a) and (b) of the above.

V

Vinay • 28.75K Points
Instructor II

Q 10. A tax increase shifts the IS curve to the

(A) left, causing output and interest rates to fall.
(B) left, causing output and interest rates to increase.
(C) right, causing output and interest rates to fall.
(D) right, causing output and interest rates to rise.

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