vu eco403 Final Term - Quiz No.8
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: Which of the following does the government NOT control directly?
Spending on health
Spending on defence
Firms investment decisions
Spending on education
Question 2: When consumers respond to the increased risk by holding more money then this causes:
LM* curve to shift to the right
LM* curve to shift to the left
AD curve to shift to the right
IS* curve to shift to the left
Question 3: IS curve shows the equilibrium in:
Money market
Goods market
Labor market
Financial market
Question 4: Many economists favor floating exchange rates system because it:
Allows the government to use monetary policy as an output stabilizer
Forces the central bank to restrict the money supply
Reduces exchange rate uncertainty
Allows the government to use trade restrictions to control the current account balance
Question 5: Which of the following assumes that the demand for real money balances is directly proportional to income?
Quantity theory of money
Transaction theory of money
Portfolio theory of money
All of the given options
Question 6: Refrigerators are examples of which of the following?
Transfer products
Non-durable goods
Services
Durable goods
Question 7: In the circular flow diagram, firms __________ inputs and households __________ products.
Supply; Demand
Demand; supply
Supply; supply
Demand; demand
Question 8: Price equilibrium is the condition:
When the demand curve intersects the quantity axis
When the demand curve intersects the price axis
When quantity demanded equals quantity supplied
When the supply curve intersects the price axis
Question 9: The rate at which the consumer is willing to substitute second period consumption for the first period consumption is known as:
Marginal rate of substitution
Rate of discounting
Rate of inflation
Interest rate
Question 10: Exogenous changes in the demand for goods and services are known as:
IS Shock
LM Shock
Demand Shock
Supply Shock
