Question 1

According to Keynes, rising aggregate income is always associated with

Accepted Answer

A)  higher saving rate
B)  higher import
C)  lower export
D)  low productionE) B) and C)
F) C) and D)

Question 2

Market does not clear is a proposition of:

Accepted Answer

A)  neoclassical theory.
B)  keynesian economics
C)  monetarism
D)  rational expectationsE) A) and B)
F) A) and C) B

Question 3

The interest rate paid on bonds is known as:

Accepted Answer

A)  call rate
B)  coupon rate
C)  repo rate
D)  bank rateE) A) and B)
F) B) and C)

Question 4

The monetary policy is completely ineffective when the LM curve is:

Accepted Answer

A)  vertical .
B)  horizontal.
C)  upward sloping.
D)  downward slopingE) B) and D)
F) All of the above

Question 5

Monetarism is associated with:

Accepted Answer

A)  keynesian school
B)  chicago school
C)  cambridge school.
D)  neo-classical school.E) A) and D)
F) B) and C)

Question 6

Employment equilibrium in the Classical theory is achievedthrough:

Accepted Answer

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

Question 7

MEC for a capital good was found out to be 10% and the market rate of interest is 9%, then the investment is

Accepted Answer

A)  not profitable
B)  profitable
C)  breakeven
D)  cannot sayE) C) and D)
F) None of the above

Question 8

In a closed economy, the value of multiplier , when MPC is 0.90

Accepted Answer

A)  25
B)  90
C)  10
D)  9E) B) and D)
F) A) and B)

Question 9

Changes in the subjective or objective factors

Accepted Answer

A)  never affect consumption function
B)  always cause downward shift in consumption function
C)  always cause upward shift in consumption function
D)  they cause upward or downward shifts in consumption functionE) B) and D)
F) All of the above

Question 10

When MPS = 0.2, MPC will be

Accepted Answer

A)  0.8
B)  0.2
C)  1.2
D)  20E) A) and B)
F) A) and C) A

Question 11

Who postulated the law Supply creates its own demand

Accepted Answer

A)  keynes
B)  j b say
C)  marshall
D)  pigouE) A) and D)
F) B) and C)

Question 12

In the Keynesian two sector economy, AD>AS, then

Accepted Answer

A)  s=i
B)  s>i
C)  s
D)  s=0E) B) and D)
F) A) and B)

Question 13

Ratio of consumption expenditure to any particular level ofincome

Accepted Answer

A)  mps
B)  aps
C)  apc
D)  mpcE) B) and D)
F) None of the above

Question 14

Income is a ------- variable

Accepted Answer

A)  flow
B)  discontinuous
C)  stock
D)  none of the aboveE) None of the above
F) All of the above A

Question 15

Autonomous investment is

Accepted Answer

A)  income inelastic
B)  instable
C)  interest elastic
D)  incomeelasticE) All of the above
F) B) and C)

Exam 3: Macro Economics Terminology and Concepts

According to Keynes, rising aggregate income is always associated with

Correct Answer
verified

Market does not clear is a proposition of:

Correct Answer
verified
B

The interest rate paid on bonds is known as:

Correct Answer
verified

The monetary policy is completely ineffective when the LM curve is:

Correct Answer
verified

Monetarism is associated with:

Correct Answer
verified

Employment equilibrium in the Classical theory is achievedthrough:

Correct Answer
verified

MEC for a capital good was found out to be 10% and the market rate of interest is 9%, then the investment is

Correct Answer
verified

In a closed economy, the value of multiplier , when MPC is 0.90

Correct Answer
verified

Changes in the subjective or objective factors

Correct Answer
verified

When MPS = 0.2, MPC will be

Correct Answer
verified
A

Who postulated the law Supply creates its own demand

Correct Answer
verified

In the Keynesian two sector economy, AD>AS, then

Correct Answer
verified

Ratio of consumption expenditure to any particular level ofincome

Correct Answer
verified

Income is a ------- variable

Correct Answer
verified
A

Autonomous investment is

Correct Answer
verified

Exam 3: Macro Economics Terminology and Concepts

According to Keynes, rising aggregate income is always associated with

Correct AnswerverifiedShow Answer

Market does not clear is a proposition of:

Correct AnswerverifiedB

The interest rate paid on bonds is known as:

Correct AnswerverifiedShow Answer

The monetary policy is completely ineffective when the LM curve is:

Correct AnswerverifiedShow Answer

Monetarism is associated with:

Correct AnswerverifiedShow Answer

Employment equilibrium in the Classical theory is achievedthrough:

Correct AnswerverifiedShow Answer

MEC for a capital good was found out to be 10% and the market rate of interest is 9%, then the investment is

Correct AnswerverifiedShow Answer

In a closed economy, the value of multiplier , when MPC is 0.90

Correct AnswerverifiedShow Answer

Changes in the subjective or objective factors

Correct AnswerverifiedShow Answer

When MPS = 0.2, MPC will be

Correct AnswerverifiedA

Who postulated the law Supply creates its own demand

Correct AnswerverifiedShow Answer

In the Keynesian two sector economy, AD>AS, then

Correct AnswerverifiedShow Answer

Ratio of consumption expenditure to any particular level ofincome

Correct AnswerverifiedShow Answer

Income is a ------- variable

Correct AnswerverifiedA

Autonomous investment is

Correct AnswerverifiedShow Answer

Correct Answer
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B

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A

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A

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