Net Jrf Mock Test #2: Macroeconomics
- 1.Expansionary monetary policy
- A.
Tends to lead to an appreciation of a nation's currency.
- B.
Usually has no effect on a currency's exchange value
- C.
Tends to lead to a depreciation of the currencies of other nations
- D.
Tends to lead to a depreciation of a nation's currency
- 2.If an individual who cannot find a job because his or her job skills have become obsolete thisis an example of
- A.
Frictional unemployment.
- B.
Structural unemployment
- C.
Cyclical unemployment
- D.
Seasonal unemployment
- 3.The natural rate of unemployment is generally thought of as the
- A.
Ratio of the frictional unemployment rate to the cyclical unemployment rate
- B.
Sum of structural unemployment and cyclical unemployment.
- C.
Sum of frictional unemployment and cyclical unemployment.
- D.
Sum of frictional unemployment and structural unemployment.
- 4.Firms react to unplanned increases in inventories by
- A.
Reducing output.
- B.
Increasing output.
- C.
Increasing planned investment.
- D.
Increasing consumption.
- 5.The ratio of the change in the equilibrium level of income to a change in some autonomous increase in spending is the
- A.
Elasticity coefficient.
- B.
Multiplier.
- C.
Automatic stabilizer.
- D.
Marginal propensity of the autonomous variable.
- 6.If the interest rate falls, then
- A.
Bond prices will remain the same
- B.
Bond prices will rise
- C.
Bond prices will fall
- D.
None of these
- 7.If the quantity of money demanded is less than the quantity of money supplied, then the interest rate will
- A.
Either increase or decrease, depending on the amount of excess demand.
- B.
Increase.
- C.
Decrease.
- D.
Not change.
- 8.When economists refer to "tight" monetary policy, they mean that the RBI is taking actions that will
- A.
Increase the demand for money.
- B.
Decrease the demand for money
- C.
Expand the supply of money
- D.
Contract the supply of money
- 9.An increase in total production (real GDP) causes the demand for money to ___________ and the interest rate to _________.
- A.
Increase; increase
- B.
Increase; decrease
- C.
Decrease; decrease
- D.
Decrease; increase
- 10.Which of the following actions is an example of expansionary fiscal policy?
- A.
A decrease in welfare payments
- B.
A purchase of government securities in the open market
- C.
A decrease in the Bank rate
- D.
A decrease in the corporate profits tax rates
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