Lower interest rates are likely to ?

Related Mcqs:

1. Under floating exchange rates, expectations of higher interest rates are likely to cause an ____ of the exchange rate?

   A. depreciation
   B. appreciation
   C. fall
   D. devaluation

2. The motive for holding money that encourages investors to hold bonds when interest rates are low, with the hope of selling them when interest rates are high, is the ?

   A. Transactions motive
   B. precautionary motive
   C. profit motive
   D. speculation motive

3. Investor engage in _____ when they move funds into foreign currencies in order to take advantage to interest rates abroad that are higher than domestic interest rates ?

   A. currency arbitrage
   B. interest arbitrage
   C. short positions
   D. long positions

4. In the events of an increase in the international price of oil that encouraged the central bank to accept lower real interest rates, inflation would most likely ?

   A. fall
   B. increase
   C. remain the same
   D. fluctuates

5. If interest rates rise then costs are likely to _______ and demand is likely to _________?

   A. rise, fall
   B. rise; rise
   C. fall; fall
   D. fall; rise

6. A way of helping depressed regions by having lower wages, lower local taxes and lower unemployment benefit has been suggested as ?

   A. market orientated economists
   B. left-wing theorists
   C. Keynesian
   D. New-Keynesian

7. A way of helping depressed regions by having lower wages lower local taxes and lower unemployment benefit has been suggested as ?

   A. market-orientated economists
   B. left-wing theorists
   C. Keynesian.
   D. new-Keynesian

8. A fall in interest rates is likely to ?

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

9. If VAT rates rise, then costs are likely to ___ and demand is likely to ____?

   A. rise; rise
   B. rise; fall
   C. fall; fall
   D. fall; rise

10. Under a system of floating exchange rates relatively low productivity and high inflation rates in the United States results in a (an) ?

    A. increase in the demand for foreign currency a decrease in the supply of foreign currency and a depreciation in the dollar
    B. increase in the demand for foreign currency an increase in the supply of foreign currency and a appreciation in the dollar
    C. decrease in the demand for foreign currency a decrease in the supply of foreign currency and a depreciation in the dollar
    D. decrease in the demand for foreign currency and increase in the supply of foreign currency and a appreciation in the dollar