Net Jrf Mock Test #2: Macroeconomics

10 Questions | Total Attempts: 98

SettingsSettingsSettings
Please wait...
Net Jrf Mock Test #2: Macroeconomics


Questions and Answers
  • 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

Back to Top Back to top