Assuming there is no government or foreign sector the formula for the multiplier is ?

Related Mcqs:

1. Assuming there is no government or foreign sector, if the multiplier is 2.5 the MPC is ?

   A. 4
   B. 25
   C. 6
   D. 2.5

2. Assuming there is no government or foreign sector, if the MPC is 8 the multiplier is ?

   A. 5
   B. 8
   C. 2
   D. 1.25

3. Micheal Roemer’s three-sector model shows that growth in the booming export sector I- reduces the price of foreign exchange II- retards other sectors’ growth by reducing incentives to export other commodities III- reduces incentives to replace domestic goods for imports IV- raises factor and input prices for non-booming sectors ?

   A. I and III only
   B. II and III only
   C. I, II and III only
   D. I, II , III only IV

4. If a government uses barriers to foreign products such as biases against a foreign company’s bids or product standards that go against a foreign company’s product features the government is using ?

   A. Protectionism
   B. exchange controls
   C. exchange facilitators
   D. nontariff trade barriers

5. If banks and the private sector decide to hold less cash the money multiplier will be ?

   A. Unchanged
   B. Larger
   C. Smaller
   D. Unstable

6. What is called that bank which regularly accepts foreign currency-denominated deposits and makes foreign currency-denominated deposits and makes foreign currency loans ?

   A. Eurobank
   B. Foreign bank
   C. International Bank
   D. Multinational Bank

7. Suppose the government increases its purchases by Rs16 billion. If the multiplier effect exceeds the crowding out effect, then ?

   A. The aggregate supply curve shifts to the right by more than Rs 16 billion
   B. The aggregate demand curve shifts to the left by more than Rs 16 billion
   C. The aggregate demand curve shifts to the right by more than Rs 16 billion
   D. the aggregate supply curve shifts to the left by more than Rs 16 billion

8. Aggregate demand without a foreign sector is the sum of ?

   A. C + 1
   B. C + G
   C. I + G
   D. C + 1 + G

9. Many U.S firms have sought relief from foreign competition by demanding protectionism policies by the U.S government. A better way for companies to compete is to expand into foreign markets and ?

   A. lower prices
   B. increase promotion both at home and abroad
   C. continuously improve their products at home
   D. join into cartels at home

10. Aggregate demand in an economy trading internationally with a government sector can be written as ?

    A. AD = C + I
    B. AD = C + I + G
    C. AD = C + I + G + X + Z
    D. AD = C + I + G + X – Z