Top 50+ Solved Macro Economic Policies MCQ Questions Answer
From 1 to 13 of 13
Q. The government spending multiplier is as higher as:
a. higher is the government spending
b. higher is the mpc
c. lower is the mpc
d. lower is the tax revenue
Q. Point out which of the following is not an instrument of fiscal policy:
a. an increase in the interest rate
b. a cut in unemployment compensation
c. an increase in tobacco taxes
d. a cut in the marginal rates of irpf
Q. The function of investment spending shifts to the left if:
a. the interest rate rises
b. the interest rate falls
c. business expectations improve
d. business expectations get worse
Q. An increase in the interest rate1
a. shifts the aggregate demand curve to the left
b. shifts the aggregate demand curve to the right
c. has no effect
d. moves the economy along the aggregate demand curve
Q. As higher is the MPS
a. lower is the multiplier.
b. higher is the investment spending
c. higher is the equilibrium income.
d. all the answers are right
Q. To increase the money supply, the bank central could:
a. cut taxes
b. purchase bonds in the open-market
c. encourage people to held more cash (currency in circulation)
d. increase the government spending
Q. The variable that connect the market of money and the market of goods via investment spending is:
a. the mpc
b. the interest rate
c. the mps
d. the cpi
Q. Point out the monetary policy instrument:
a. an increase in direct taxes
b. open-market operations
c. freezing pensions
d. a cut in government purchase of goods and services
Q. Monetary Policy is a regulatory policy by which the ______or monetary authority of a country controls thesupply of money, availability of bank credit and cost of money that is the rate of interest:
a. central bank (rbi)
b. sbi
c. iba
d. none of these
Q. _______controls the supply of money and bank credit:
a. rbi
b. indian banking association
c. sebi
d. none of these
Q. The main objective of monetary policy in India is_______:
a. growth with stability
b. reduce poverty and achieve stability
c. overall monetary stability
d. none of these
Q. The Cash Reserve Ratio is an effective instrument of credit control. Under the RBI Act, 1934 every______bank has to keep certain minimum cash reserves with RBI:
a. public bank
b. commercial bank
c. industrial and agricultural banks
d. none of these
Q. If RBI wants to increase the credit flow it buys ______:
a. government securities
b. shares and debentures
c. other local and short-term securities
d. none of these
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