Miscellaneous Economics Mcqs

A. Government policy
B. Expectations
C. National income
D. Historic trends

A. The cost of borrowing equals the marginal efficiency of capital
B. The cost of borrowing is greater than the marginal efficiency of capital
C. The cost of borrowing is less then the marginal efficiency of capital
D. The cost of borrowing equals the marginal propensity to consume

A. The marginal propensity to consume is constant
B. The economy is at full employment
C. There is a constant relationship between net investment and the rate of change of output
D. The multiplier is constant

A. Decrease consumption
B. Increase aggregate demand
C. Reduce aggregate supply
D. Slow economic growth

A. Total spending / total consumption
B. Total consumption / total income
C. change in consumption / change in income
D. Change in consumption / change in savings

A. Decrease consumption
B. increase cost of borrowing
C. Encourage saving
D. Increase spending

A. The average propensity to consume gets nearer in value of the marginal propensity to consume
B. The average propensity to consume diverges in value from the marginal propensity to consume
C. The average propensity to consume falls
D. The average propensity to consume always approaches 0

A. increase the size of the multiplier
B. Increase the marginal propensity to save
C. Decrease national income
D. Reduce injections into the economy

A. GDP increase
B. Inflation is likely to increase
C. Stock levels are likely to increase
D. Investment in equipment is likely to increase

A. 0.8
B. 800
C. 810
D. 0.81