macroeconomic issues and analysis MCQs – Page 2

Practise focused macroeconomic issues and analysis questions with marked answers for exam preparation and subject revision.

macroeconomic issues and analysis Mcqs

21. The record of a countrys imports and exports of of goods and services plus net investment incomes and current transfers of money to and from abroad, is called its ?
0

A. balance of payments

B. balance of payments on current account

C. visible trade balance

D. balance of trade

22. If a nations interest rates are relatively low compared to those of other countries. then the exchange value of its currency will tend to ?
0

A. fluctuate more than if interest rates were high

B. depreciate

C. appreciate

D. not be affected

23. If a large car importer in the Pakistan wants to import many cars, then the exchange value of the Pak rupees will tend to ?
0

A. fluctuate more than it would do otherwise

B. appreciate

C. depreciate

D. not be affected

24. The record of countrys transfers of land inter-government payments and money sent by migrants to and from abroad is called its ?
0

A. balance of payments on current account

B. capital account of the balance of payments

C. balance of payments

D. financial account of the balance of payments

25. The Maastricht criteria for entry to the EMU are that applicants should have ?
0

A. stable nominal exchange rates

B. budget deficits and government debt under control

C. low inflation

D. all of the above

E. low interest rates

26. Starting from a position of internal and external balance a reduction in aggregate demand will cause a current account ?
0

A. revaluation

B. deficit

C. devaluation

D. surplus

27. A fixed exchange rate, plus perfect capital mobility ________ the scope for monetary policy ?
0

A. undermines

B. enhances

C. facilitates

D. encourages

28. If the Pakistan takes part in a war in the Middle East, then the exchange value of its currency will tend to ?
0

A. depreciate

B. not be affected

C. appreciate

D. fluctuate more than if it were at peace

29. As prices rise. People will want to keep more money as cash and in bank accounts This is called ?
0

A. real balance effect.

B. menu costs of inflation.

C. cash ratio.

D. money illusion.

30. The demand for ice-cream is lower outside of summer causing lower demand for ice-cream salesman if they cannot find other work, this is called _______ unemployment?
0

A. Regional

B. seasonal

C. structural

D. demand-deficient

31. Which of the following is a possible government objective as opposed to a policy ?
0

A. Lower taxation rates

B. Lower government spending

C. Lower interest rates

D. Lower inflation

32. Which fixed exchange rates and no private capital flows, to correct a balance of payments deficit, the central bank will _______ and ________ ?
0

A. sell foreign exchange buy domestic currency

B. sell foreign exchange sell domestic currency

C. buy foreign exchange, sell domestic currency

D. buy foreign exchange buy domestic currency

33. The competitive advantage from a devaluation is likely to be offset by _______ and ________?
0

A. higher import prices, lower export prices

B. lower export prices, lower imports volumes

C. higher wage increases lower import volumes

D. higher import prices, higher wages increases

34. The record of a countys transfers of shareholding property and bank deposits to and from abroad is called its ?
0

A. balance of payments

B. capital account of the balance of payments

C. balance of payments on current account

D. financial account on the balance of payments.

35. A rise in the real exchange rate will ________ the competitiveness of the domestic economy?
0

A. None of the above

B. increase

C. reduce

D. do nothing to

36. What is meant by an objective ?
0

A. A target

B. A strategy

C. A way of reaching a target

D. A policy

37. If the exchange rate between the UK and Japan changes from 1 = 100 yen to 1 = 150 yen then ceteris paribus, the price of UK goods in Japan ?
0

A. will decrease

B. could either increase of decrease

C. will remain the same

D. will increase

38. In a fixed exchange rate regime, the central the exchange rate ?
0

A. selling, increase

B. selling, reduce

C. buying reduce

D. C and D

E. A and B

F. buying increase

39. Fiscal policy is weak under floating exchanges rates as fiscal expansion ?
0

A. crowds out exports

B. crowds out imports

C. reduces the budget deficit

D. crowds out public consumption

40. Unemployment resulting from imperfect information in the labour market is called ____ unemployment?
0

A. disequilibrium

B. natural

C. Frictional

D. real-wage

Previous Next

Showing 21 to 40 of 76 mcqs