A. 4
B. 25
C. 6
D. 2.5
Assuming there is no government or foreign sector, if the multiplier is 2.5 the MPC is ? Read More »
Economics Mcqs, 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
The marginal propensity to withdraw is ? Read More »
Economics Mcqs, Miscellaneous Economics Mcqs A. decrease
B. remain constant
C. increase
D. either increase or decrease depending on the size of the change in investment
As the MPS increases the multiplier will ? Read More »
Economics Mcqs, Miscellaneous Economics Mcqs A. previous decisions
B. absolute income
C. relative income
D. permanent income
Keynes suggested that decisions to consume and save were based on ? Read More »
Economics Mcqs, Miscellaneous Economics Mcqs A. the marginal propensity of expenditure
B. the marginal propensity to save
C. the average propensity to consume
D. the marginal propensity to consume
The fraction of change in income that is consumed or spend is called ? Read More »
Economics Mcqs, Miscellaneous Economics Mcqs A. exogenous
B. constant
C. endogenous
D. independent
A variable whose value is determined by the model of which it is a part is termed ? Read More »
Economics Mcqs, Miscellaneous Economics Mcqs A. Reduces the interest rate
B. Buys and sells bonds and securities
C. Increases taxation
D. Increase the exchange rate
Open Market Operations occur when the government ? Read More »
Economics Mcqs, Miscellaneous Economics Mcqs 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
The speculative demand for money occurs when ? Read More »
Economics Mcqs, Miscellaneous Economics Mcqs A. Reduce the interest rate
B. Increase the interest rate
C. Increase inflation
D. Decrease deflation
A reduction in the money supply is likely to ? Read More »
Economics Mcqs, Miscellaneous Economics Mcqs