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JCB (Which makes agricultural and construction equipment) has the opportunity to purchase a new factory today that will provide them with a Rs50 million return four years from now If prevailing interest rates are 6 percent, what is the maximum that the project can cost for JCB to be willing to undertake the project ?

Economics Mcqs, Risks And Diversification & Efficient Market Hypothesis /
JCB (Which makes agricultural and construction equipment) has the opportunity to purchase a new factory today that will provide them with a Rs50 million return four years from now If prevailing interest rates are 6 percent, what is the maximum that the project can cost for JCB to be willing to undertake the project ?

A. Rs 43,456,838
B. Rs 53,406,002
C. Rs 34,538,902
D. Rs 39,604,682

JCB (Which makes agricultural and construction equipment) has the opportunity to purchase a new factory today that will provide them with a Rs50 million return four years from now If prevailing interest rates are 6 percent, what is the maximum that the project can cost for JCB to be willing to undertake the project ? Read More »

Economics Mcqs, Risks And Diversification & Efficient Market Hypothesis

The amount today that would be needed, at prevailing interest rates, to produce a particular sum in the future is known as ?

Economics Mcqs, Risks And Diversification & Efficient Market Hypothesis /
The amount today that would be needed, at prevailing interest rates, to produce a particular sum in the future is known as ?

A. future value
B. fair value
C. present value
D. compound value
E. beginning value

The amount today that would be needed, at prevailing interest rates, to produce a particular sum in the future is known as ? Read More »

Economics Mcqs, Risks And Diversification & Efficient Market Hypothesis

The regarding the new classical macroeconomics is hoe realistic is the assumption ?

Economics Mcqs, Roots of Modern Macroeconomics /
The regarding the new classical macroeconomics is hoe realistic is the assumption ?

A. that monetary policy affects aggregates demand
B. that markets do not clear quickly
C. that fiscal policy affects aggregate demand
D. of rational expectations.

The regarding the new classical macroeconomics is hoe realistic is the assumption ? Read More »

Economics Mcqs, Roots of Modern Macroeconomics

It is difficult to determine if the velocity of money is constant over time because ?

Economics Mcqs, Roots of Modern Macroeconomics /
It is difficult to determine if the velocity of money is constant over time because ?

A. it is difficult to measure the value of nominal GDP over time
B. there has been very little fluctuation in the money supply over time.
C. it is difficult to measure the demand for money over time
D. whether velocity is constant or not may depend on how the money supply is measure.

It is difficult to determine if the velocity of money is constant over time because ? Read More »

Economics Mcqs, Roots of Modern Macroeconomics

The quantity theory of money implies that a given percentage change in the money supply will cause ?

Economics Mcqs, Roots of Modern Macroeconomics /
The quantity theory of money implies that a given percentage change in the money supply will cause ?

A. an equal percentage change in nominal DGP.
B. an equal percentage change in real GDP
C. a larger percentage change in nominal GDP
D. a smaller percentage change in nominal

The quantity theory of money implies that a given percentage change in the money supply will cause ? Read More »

Economics Mcqs, Roots of Modern Macroeconomics

People are said to have rational expectations if they ?

Economics Mcqs, Roots of Modern Macroeconomics /
People are said to have rational expectations if they ?

A. assume that this year’s inflation rate will be the same as last year’s inflation rate
B. merely guess at the inflation rate.
C. assume that this year’s inflation rate will be equal to the average inflation rate over the past 10 years
D. Use all available information in forming their expectations.

People are said to have rational expectations if they ? Read More »

Economics Mcqs, Roots of Modern Macroeconomics

The hypothesis that people know the true model of the economy and that they use this model to form their expectations of the future is the ?

Economics Mcqs, Roots of Modern Macroeconomics /
The hypothesis that people know the true model of the economy and that they use this model to form their expectations of the future is the ?

A. Rational-expectations hypothesis
B. Passive-expectations hypothesis
C. adaptive expectations hypothesis
D. lagged-expectations hypothesis.

The hypothesis that people know the true model of the economy and that they use this model to form their expectations of the future is the ? Read More »

Economics Mcqs, Roots of Modern Macroeconomics