Q. The interest rate paid on bonds is known as:
✅ Correct Answer: (B)
coupon rate
Macroeconomics Theories and Policies 1 MCQs and Notes
Q. Market does not clear is a proposition of:
✅ Correct Answer: (B)
keynesian economics
Q. Employment equilibrium in the Classical theory is achievedthrough:
✅ Correct Answer: (A)
wage-price flexibility.
Q. Who invented the General Equilibrium analysis?
✅ Correct Answer: (A)
l. walras.
Q. In the long-run ISLM model, the long-run effect of a fall in net exports is to
✅ Correct Answer: (D)
not affect real output and reduce the interest rate.
Q. In the long-run ISLM model, the long-run effect of an autonomous increase in investment is to
✅ Correct Answer: (C)
not affect real output and increase the interest rate.
Q. In the long-run ISLM model, the long-run effect of a tax cut is to
✅ Correct Answer: (C)
not affect real output and increase the interest rate.
Q. In the long-run ISLM model, the long-run effect of a cut in government spending is to
✅ Correct Answer: (D)
not affect real output and reduce the interest rate.
Q. Factors that cause the IS curve to shift include
✅ Correct Answer: (D)
only (a) and (b) of the above.
Q. A tax increase shifts the IS curve to the
✅ Correct Answer: (A)
left, causing output and interest rates to fall.