Macro Economics MCQ
Macro Economics MCQ Meaning :- Macroeconomics is the branch of economics that deals with the structure, performance, behavior, and decision-making of the whole, or aggregate, economy. The two main areas of macroeconomic research are long-term economic growth and shorter-term business cycles.
21. The balanced budget multiplier in the Keynesian Cross Model is
a. Equal to one.
(b) greater than one.
(c) less than one d. None of these
Answer:a
22. The concept of multiplier was first developed by
a. J M Keynes
b. F A Khan
c. J
D Clark d. Samuelson
Answer:b
23. The formula for calculating investment multiplier is
A.∆ Y
B. ∆Y+∆ I
∆I
C.∆I D.
D.∆ C+ ∆I
∆Y
Answer:a
24. Which among the following does not have the application of multiplier
a. Determination of income
b. Fiscal policy
c. Monetary policy
d. Foreign direct investment
Answer:c
25. Which of the following Fisher’s equation of exchange is not correct
a. MV=PT
b.MV=PQ
c. MV=PY
d. MV=PR
Answer:d
26. The tendency of the people to believe the currency of nominal value at present to be equal to purchasing power at a previous point is called
a. Legal tender money
b. Demonetisation
c. Money illusion
d. Remonetisation
Answer:c
27. The relationship between money supply and price level under Quantity theory of money is :
a. Direct non proportionate relationship
b. Inverse proportionate relationship
c. Direct proportionate relationship
d. Inverse non proportionate relationship
Answer:c
28. In Keynes consumption theory the chief factor that determines consumption expenditure is
a. Personal income
b. Relative income
c. Permanent income
d. Disposable income
Answer:d
29. Under Keynes Psychological law of consumption the relationship between consumption and income is
a. Linear and proportional
b. Non-linear and proportional
c. Linear and non-proportional
d. Nonlinear and non-proportional Both C &D
Answer:b
30. Equation M=KPT is propounded by which of the following Cambridge economists
a. Keynes
b. Marshall
c. Robertson
d. Pigou
Answer:c
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