Miscellaneous Economics Mcqs

A. The marginal propensity to consume.
B. The amount of income when consumption is zero
C. The average consumption level
D. The amount of consumption when income is zero

A. aggregate investment
B. aggregate expenditure
C. aggregate demand
D. aggregate output

A. A lower interest rate but the same quantity of money
B. A higher interest rate but the same quantity of money
C. A higher quantity of money but lower interest rates
D. A higher quantity of money but the same interest rate

A. Reduce interest rates
B. Buy back government bonds
C. Sell government bonds
D. Encourage banks to lend

A. The velocity of circulation decrease
B. The number of transaction decrease
C. There is deflation
D. The velocity of circulation and the number of transactions is constant

A. Is perfectly interest elastic
B. Is perfectly interest inelastic
C. Means that an increase in money supply leads to a fall in the interest rate
D. Means that an increases in the money supply leads to an increases in the interest rate

A. Depreciation
B. Acceleration
C. Declaration
D. Capital investment

A. Government policy
B. Expectations
C. National income
D. Historic trends

A. The cost of borrowing equals the marginal efficiency of capital
B. The cost of borrowing is greater than the marginal efficiency of capital
C. The cost of borrowing is less then the marginal efficiency of capital
D. The cost of borrowing equals the marginal propensity to consume

A. The marginal propensity to consume is constant
B. The economy is at full employment
C. There is a constant relationship between net investment and the rate of change of output
D. The multiplier is constant