A. Low rate of interest
B. Very low rate of interest
C. High rate of interest
D. Very high rate of interest
Related Mcqs:
- The liquidity trap occurs when the demand for money ?
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 - The poverty trap refers to ?
A. a situation in which those receiving state benefits may be almost no better off if they choose to work more to earn more income for themselves and their families because doing so will mean they have to pay back the benefits they have previously received
B. a situation in which workers are unable to find jobs.
C. a situation in which those receiving state benefits may be almost no better off if they choose to work more to earn more because doing so will reduce the amount of benefit income to which they are entitled and increase the amount to tax
D. a situation in which those receiving state benefits are discriminated against by employers and so find it more difficult to find jobs. - In Pakistan the term the poverty trap is used to describe the fact that ?
A. poor people are excluded from most leisure and social activities
B. the Pakistan benefit system makes being poor vary degrading
C. if poor people earn more their benefits fall, making them no better off.
D. in the Pakistan poor people are heavily taxed - If there is a general shortage of liquidity in the money market then ?
A. The banks will increase their lending
B. The short-term interest rate at which the economy’s commercial banks lend to and borrow from each other will fall and the central bank may be expected to reduce the supply of liquidity to the banks
C. The short-term interest rate at which the economy’s commercial banks lend to and borrow from each other will rise and the long-term interest rate may be expected to rise as a result
D. the long-term interest rate in the economy will rise and the central bank will raise its interest rate in response
E. The short-term interest rate at which the economy’s commercial banks lend to and borrow from each other will rise and the central bank may be expected to increase the supply of liquidity to the banks. - Keynes liquidity preference theory of the interest rate suggests that the interest rate is determined by ?
A. aggregate supply and aggregate demand
B. the supply and demand for loanable funds
C. the supply and demand for money
D. the supply and demand for labor - When the world Bank or IMF requires improved external balance in the short run the agency may condition its loan on expenditure switching that is ?
A. switching spending from domestic to foreign sources
B. devaluing local currencies
C. increase trade restrictions by imposing quota
D. increase government spending - For a firm operating in two markets and price discriminating the profit maximising condition is ?
A. Marginal revenue in A= Price B
B. Marginal revenue in A = Marginal revenue B = Price A = Price B
C. Marginal revenue in A = Marginal revenue B = Marginal cost
D. Marginal revenue in A = Marginal revenue B = Average cost - According to the Marshall-Lerner condition if a country’s currency depreciates its trade balance will worsen if ?
A. elasticity of demand for exports = 0.9; elasticity of demand for imports = 0.4
B. elasticity of demand for exports = 0.7; elasticity of demand for imports = 0.3
C. elasticity of demand for exports = 0.5; elasticity of demand for imports = 0.7
D. elasticity of demand for exports = 0.3; elasticity of demand for imports = 0.6 - Which one of the following was the most important condition for the growth of the early cities ?
A. Discoveries of new trades
B. Increase in population
C. Surplus food production
D. Technological innovations - Which condition is a major obstacle to economic development in the Middle East and Northern Africa ?
A. use of strip mining to obtain minerals
B. reliance on capitalist economic systems
C. lack of access to world markets
D. scarcity of water resources
