vu eco403 Final Term - Quiz No.3
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 2: The central bank tries to prevent the depreciation by reducing the money supply. This causes:
LM* curve to shift to the right
LM* curve to shift to the left
IS* curve to shift to the right
IS* curve to shift to the left.
Question 4: M1:
Is the narrowest definition of the money supply
Includes the most liquid forms of money
Includes travelers checks
All of the given options
Question 5: The money supply increases when:
There is an increase in government purchases
The Central bank buys Treasury bonds from the public
A private citizen buys a bond issued by General Motors
IBM sells stock to the public and uses the proceeds to finance the construction of a newfactory
Question 6: The currency exchange rate causes a shift of the aggregate demand curve through a change in:
Consumption
Investment
Net exports
Transfer payments
Question 7: Increased levels of consumption:
Shift aggregate supply to the right
Shift aggregate supply to the left
Shift aggregate demand to the right
Shift aggregate demand to the left
Question 8: Floating debt is a type of:
Long term loans
Short term loans
Domestic loans
Foreign loans
Question 9: The currency exchange rate is most likely to change and cause a shift of the aggregate demand curve through a change in:
Consumption
Investment
Net exports
Transfer payments
Question 10: Which of the following is the largest component of total expenditures?
Undertaking consumption.
Undertaking production.
Exchanging goods.
Exchanging resources.
