vu eco403 Final Term - Quiz No.1
vu eco403 Macroeconomics Quiz
This quiz belongs to book/course code vu eco403 Macroeconomics of vu organization. We have 22 quizzes available related to the book/course Macroeconomics. This quiz has a total of 10 multiple choice questions (MCQs) to prepare and belongs to topic Final Term. NVAEducation wants its users to help them learn in an easy way. For that purpose, you are free to prepare online MCQs and quizzes.
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Question 1: If interest rates increase, people will most likely hold:
More bonds and less cash
Less bonds and less cash
More bonds and more cash
Less bonds and more cash
Question 2: In the Keynesian Cross model, the aggregate expenditure line has a slope of:
0
1
Less than 1
Greater than 1
Question 4: Dissaving occurs if:
Saving is negative
National income is negative
Personal income is negative
The Marginal Propensity to Consume is negative
Question 5: In the sticky-price model:
All firms adjust prices instantly in response to changes in demand.
No firms adjust prices instantly in response to changes in demand
Some firms adjust prices instantly in response to changes in demand while others do not
Output is constant
Question 6: Monetary policy is totally ineffective on output under:
Floating exchange rate
Fixed exchange rate
Nominal exchange rate
Real exchange rate
Question 7: A common misperception about inflation is that it reduces real wages; this is:
True only in the short run
True only in the Long run
True only in Command economies
None of the given options
Question 8: Which of the following would not be included in M2?
Demand deposits
Checking accounts
Money market accounts
None of the given options
Question 9: The idea that government spending causes a reduction in private investment is called:
Fiscal drag
Crowding-out
Investment blight
Accelerator effect
Question 10: An asset that is included in M3 but not in M2 is:
Currency
Checkable deposits
Small-denomination certificates of deposit
Large-denomination
