Miscellaneous Economics Mcqs

A. automatic stabiliser
B. multiplier
C. elasticity coefficient
D. marginal propensity of the autonomous variable

A. 1/investment multiplier
B. 1-(1/injections multiplier
C. MPS + MPT + MPM
D. the proportion of national income that is withdraw from the circular flow of income

A. decrease
B. remain constant
C. increase
D. either increase or decrease depending on the size of the change in investment

A. previous decisions
B. absolute income
C. relative income
D. permanent income

A. the marginal propensity of expenditure
B. the marginal propensity to save
C. the average propensity to consume
D. the marginal propensity to consume

A. exogenous
B. constant
C. endogenous
D. independent

A. Reduces the interest rate
B. Buys and sells bonds and securities
C. Increases taxation
D. Increase the exchange rate

A. Individuals hold money just in case an emergency happens
B. Individuals hold money to buy things
C. Individuals hold money rather than other assets because they are worried about the price of the other assets falling
D. Individuals hold money to shop

A. Reduce the interest rate
B. Increase the interest rate
C. Increase inflation
D. Decrease deflation

A. Increase aggregate demand
B. Increase savings
C. Decrease consumption
D. Decrease exports