If currency dealers expect the value of the pound to fall, the exchange value will tend to ?

fluctuate more than it would do therwise

If a nation’s interest rates are relatively low compared to those of other countries. then the exchange value of its currency will tend to ?

fluctuate more than if interest rates were high

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

fluctuate more than it would do otherwise

Cyclical unemployment is the ?

Portion of unemployment that is due to the normal working of the labour market

Portion of unemployment that is due to changes in the structure of the economy that results in a significant loss of jobs in certain industries.

Unemployment that results when people become discouraged about their chances of finding a job so they stop looking for work.

Unemployment that occurs during recessions and depressions.

Classifying discouraged workers as unemployed would ?

have an indeterminate impact on the unemployment rate

not change the unemployment rate

have an indeterminate impact on the unemployment rate

All of the following are benefits of the single market except ?

it allows countries to exploit their comparative advantage, more fully

firm could more readily exploit

it is easier to book holidays in member countries

Aggregate demand is the total demand for all goods and services in an economy from ?

the household and government sectors

all sectors of except the rest of the world

all sectors of the economy including the rest of the world.

A monetary union means ________, ________ and ________?

a common currency a single central bank, common monetary policy

permanently fixed capital movements floating exchange rates a fixed structure of interest rates

permanently fixed exchange rates, free capital movements, a single interest rates

a common currency a single central bank, common monetary policy

a common currency floating exchange rates common monetary policy

A current account deficit means that a country may ?

increase its stock of foreign assets

reduce its stock of foreign assets

increase its stock of foreign assets

increases its foreign currency reserves

72 + Mcqs in Macroeconomic Issues & Analysis in Economics Page 2 McqOptions

51.	If interest rates rise then costs are likely to _______ and demand is likely to _________?
A.	rise, fall
B.	rise; rise
C.	fall; fall
D.	fall; rise
Answer» B. rise; rise

Discussion

52.	If currency dealers expect the value of the pound to fall, the exchange value will tend to ?
A.	depreciate
B.	not be affected
C.	fluctuate more than it would do therwise
D.	appreciate
Answer» B. not be affected

Discussion

53.	If British residents want more French francs to purchase more French cloths other things equal, then the equilibrium value of the pound against the French franc will ?
A.	rise
B.	fall
C.	not change
D.	fluctuate
Answer» C. not change

Discussion

54.	If a nation’s interest rates are relatively low compared to those of other countries. then the exchange value of its currency will tend to ?
A.	not be affected
B.	appreciate
C.	depreciate
D.	fluctuate more than if interest rates were high
Answer» D. fluctuate more than if interest rates were high

Discussion

55.	If a large car importer in the Pakistan wants to import many cars, then the exchange value of the Pak rupees will tend to ?
A.	fluctuate more than it would do otherwise
B.	appreciate
C.	depreciate
D.	not be affected
Answer» D. not be affected

Discussion

56.	Government policies that focus on increasing production rather than demand are called ?
A.	fiscal policies
B.	monetary policies
C.	supply-side policies
D.	incomes policies
Answer» D. incomes policies

Discussion

57.	Government policies that focus on changing taxes and government spending are called ?
A.	fiscal policies
B.	incomes policies
C.	supply-side policies
D.	monetary policies
Answer» B. incomes policies

Discussion

58.	Government policies that focus on changing interest rates are called ?
A.	fiscal policies
B.	monetary policies
C.	supply-side policies
D.	incomes policies
Answer» C. supply-side policies

Discussion

59.	Floating exchange rates are ____ in the short run?
A.	stable
B.	predictable
C.	volatile
D.	depreciating
Answer» D. depreciating

Discussion

60.	Fiscal policy is weak under floating exchanges rates as fiscal expansion ?
A.	crowds out imports
B.	crowds out public consumption
C.	crowds out exports
D.	reduces the budget deficit
Answer» D. reduces the budget deficit

Discussion

61.	Cyclical unemployment is the ?
A.	Portion of unemployment that is due to the normal working of the labour market
B.	Portion of unemployment that is due to changes in the structure of the economy that results in a significant loss of jobs in certain industries.
C.	Unemployment that results when people become discouraged about their chances of finding a job so they stop looking for work.
D.	Unemployment that occurs during recessions and depressions.
Answer» E.

Discussion

62.	Classifying discouraged workers as unemployed would ?
A.	not change the unemployment rate
B.	decrease the unemployment rate
C.	increase the unemployment rate
D.	have an indeterminate impact on the unemployment rate
Answer» D. have an indeterminate impact on the unemployment rate

Discussion

63.	As prices rise, there will be costs of constantly changing price-tags and reprinting price-lists This is called ?
A.	real balance effect
B.	menu costs of inflation
C.	money illusion.
D.	cost-push inflation.
Answer» C. money illusion.

Discussion

64.	As prices rise. People will want to keep more money as cash and in bank accounts This is called ?
A.	real balance effect.
B.	cash ratio.
C.	money illusion.
D.	menu costs of inflation.
Answer» B. cash ratio.

Discussion

65.	An individual who is not working and who has given up looking for work is classfied as ?
A.	a discouraged worker:
B.	unemployed.
C.	hard core unemployed.
D.	unemployable
Answer» B. unemployed.

Discussion

66.	An economy that trades with and has financial dealing with other countries is called a/an ________ economy?
A.	free-trade
B.	autarkic
C.	open
D.	mixed
Answer» D. mixed

Discussion

67.	All of the following are benefits of the single market except ?
A.	it allows countries to exploit their comparative advantage, more fully
B.	firm could more readily exploit
C.	economies of scal
D.	it intensified competition
E.	it is easier to book holidays in member countries
Answer» F.

Discussion

68.	Aggregate demand is the total demand for all goods and services in an economy from ?
A.	the household and government sectors
B.	the household sector.
C.	all sectors of except the rest of the world
D.	all sectors of the economy including the rest of the world.
Answer» E.

Discussion

69.	A rise in the real exchange rate will ________ the competitiveness of the domestic economy?
A.	increase
B.	reduce
C.	do nothing to
D.	None of the above
Answer» C. do nothing to

Discussion

70.	A monetary union means ________, ________ and ________?
A.	permanently fixed capital movements floating exchange rates a fixed structure of interest rates
B.	permanently fixed exchange rates, free capital movements, a single interest rates
C.	a common currency a single central bank, common monetary policy
D.	a common currency floating exchange rates common monetary policy
Answer» C. a common currency a single central bank, common monetary policy

Discussion

71.	A fixed exchange rate, plus perfect capital mobility ________ the scope for monetary policy ?
A.	enhances
B.	undermines
C.	encourages
D.	facilitates
Answer» C. encourages

Discussion

72.	A current account deficit means that a country may ?
A.	reduce its stock of foreign assets
B.	increase its stock of foreign assets
C.	increases its savings
D.	increases its foreign currency reserves
Answer» B. increase its stock of foreign assets

Discussion

Explore topic-wise MCQs in Economics.

If interest rates rise then costs are likely to _ and demand is likely to ___?

If currency dealers expect the value of the pound to fall, the exchange value will tend to ?

If British residents want more French francs to purchase more French cloths other things equal, then the equilibrium value of the pound against the French franc will ?

If a nation’s interest rates are relatively low compared to those of other countries. then the exchange value of its currency will tend to ?

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

Government policies that focus on increasing production rather than demand are called ?

Government policies that focus on changing taxes and government spending are called ?

Government policies that focus on changing interest rates are called ?

Floating exchange rates are ____ in the short run?

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

Cyclical unemployment is the ?

Classifying discouraged workers as unemployed would ?

As prices rise, there will be costs of constantly changing price-tags and reprinting price-lists This is called ?

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

An individual who is not working and who has given up looking for work is classfied as ?

An economy that trades with and has financial dealing with other countries is called a/an ________ economy?

All of the following are benefits of the single market except ?

Aggregate demand is the total demand for all goods and services in an economy from ?

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

A monetary union means , and ?

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

A current account deficit means that a country may ?

Explore topic-wise MCQs in Economics.

If interest rates rise then costs are likely to _______ and demand is likely to _________?

If currency dealers expect the value of the pound to fall, the exchange value will tend to ?

If British residents want more French francs to purchase more French cloths other things equal, then the equilibrium value of the pound against the French franc will ?

If a nation’s interest rates are relatively low compared to those of other countries. then the exchange value of its currency will tend to ?

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

Government policies that focus on increasing production rather than demand are called ?

Government policies that focus on changing taxes and government spending are called ?

Government policies that focus on changing interest rates are called ?

Floating exchange rates are ____ in the short run?

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

Cyclical unemployment is the ?

Classifying discouraged workers as unemployed would ?

As prices rise, there will be costs of constantly changing price-tags and reprinting price-lists This is called ?

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

An individual who is not working and who has given up looking for work is classfied as ?

An economy that trades with and has financial dealing with other countries is called a/an ________ economy?

All of the following are benefits of the single market except ?

Aggregate demand is the total demand for all goods and services in an economy from ?

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

A monetary union means ________, ________ and ________?

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

A current account deficit means that a country may ?

If interest rates rise then costs are likely to _ and demand is likely to ___?

A monetary union means , and ?