Macro PYQ — Page 7

The ratio of increase in income to increase in investment is termed as

Suppose, in a flexible exchange rate system, demand for foreign goods and services increases due to increased international travel by Indians. Arrange the following statements in correct sequence. (A) Exchange rate increases. (B) Exports from India become more affordable for foreigners. (C) India's income increases by keeping other factors constant. (D) The demand curve shifts towards the right. Choose the correct answer from the options given below: 1. (D), (B), (C), (A) 2. (D), (C), (B), (A) 3. (D), (A), (B), (C) 4. (D), (B), (A), (C)

Which of the following statements about national debt are correct? (A) Deficit can be thought of as a flow variable which adds to the stock of debt (B) The government finances debt through taxation, borrowing or printing money (C) Debt owned to foreigners involves a higher burden than debt owned to domestic agents and institutions (D) Government's debt financing crowds out private borrowers in financial markets Choose the correct answer from the options given below:

Arrange the following statements in sequential order. (A) Aggregate demand will increase. (B) Induce the public to borrow more. (C) Central Bank will decrease the reverse repo rate. (D) Ex-ante aggregate demand is less than Ex-ante aggregate supply Choose the correct answer from the options given below: 1. (A), (B), (C), (D) 2. (A), (C), (B), (D) 3. (D), (C), (B), (A) 4. (A), (B), (D), (C)

Suppose there is a fresh deposit of Rs. 10,000 in banks and cash reserve ratio is 0.5. How much is total deposit creation? 1. 20,000 2. 50,000 3. 10,000 4. 5000

Which of the following constitutes as 'leakages' from the circular flow of income. (A) Domestic Savings. (B) Imports. (C) Outward Foreign Direct Investment. (D) Investment. Choose the correct answer from the options given below: 1. (A), (B) and (C) only 2. (A), (B), (C) and (D) 3. (B), (C) and (D) only 4. (A), (B) and (D) only

Whatever is left over is appropriated by the entrepreneur is called .................. 1. Profit. 2. Interest. 3. Subsidies. 4. Capital.

How much consumption will increase when income increases by Rs. 5000 at given marginal propensity to consume of 0.60. 1. Increase in consumption= Rs. 5000 2. Increase in consumption= Rs. 4000 3. Increase in consumption= Rs. 3000 4. Increase in consumption= Rs. 2000

Match List-I with List-II | List-I | List-II | |---|---| | (A) An increase in proportional taxes | (I) Decreases consumption by MPC times the change in taxes. | | (B) An increase in lump-sum taxes | (II) Automatic Stabilizer. | | (C) Proportional income tax | (III) Aggregate demand curve shift inwards. | | (D) Lump sum taxes | (IV) Do not depend upon income. | Choose the correct answer from the options given below: 1. (A) - (I), (B) - (II), (C) - (III), (D) - (IV) 2. (A) - (I), (B) - (III), (C) - (II), (D) - (IV) 3. (A) - (III), (B) - (I), (C) - (II), (D) - (IV) 4. (A) - (III), (B) - (I), (C) - (IV), (D) - (II)

In the consumption function $C = \bar{C} + cY$; autonomous consumption denoted by: 1. $C$ 2. $cY$ 3. $\bar{C}$ 4. $Y$

Which of the following are part of Capital account. (A) Foreign Direct Investment. (B) Offshore Funds. (C) Portfolio Investment. (D) Repayment of Loans. Choose the correct answer from the options given below: 1. (A), (B) and (D) only 2. (A), (B) and (C) only 3. (A), (B), (C) and (D) 4. (B), (C) and (D) only

The Reserve Bank sells foreign exchange when there is a deficit. This move of RBI is known by which of the following? 1. Official reserve sale. 2. Balance of payments deficit. 3. Balance of payments surplus. 4. Balance of trade.

Arrange the following statements in chronological order in respect to the increase in the proportion of income people save. (A) Marginal propensity to consume decreases. (B) The level of income decreases. (C) The amount of savings remains the same. (D) The aggregate demand curve shifts downwards. Choose the correct answer from the options given below: 1. (A), (B), (C), (D) 2. (A), (C), (B), (D) 3. (B), (A), (D), (C) 4. (A), (D), (B), (C)

When the government has taken certain decision that can financed through the budget and can be used without any direct payment. Such move is known as.......... 1. Public Provision. 2. Public Production. 3. Public Goods. 4. Private Goods.

If the market rate of interest is already low enough so that everybody expects it to rise in future, causing capital losses, nobody will wish to hold bonds. This situation is called............. 1. Jevons Paradox 2. Liquidity trap 3. Paradox of thrift 4. Double coincidence of wants

When autonomous investment increases in a two-sector model, then. 1. The aggregate demand curve shifts upwards. 2. Output/GDP increases by the same magnitude as the change in investment. 3. Autonomous expenditure increases by the same magnitude as the change in investment. 4. The consumption curve shifts upwards.

From the following statements choose the effects of devaluation of domestic currency. (A) Exchange rate is fixed. (B) Indian Government increases the exchange rate. (C) Domestic currency become cheaper. (D) The Exports of India will rise. Choose the correct answer from the options given below:

Match List-I with List-II | List-I | List-II | |---|---| | (A) Percentage of deposits that a bank keep as reserve with Central Bank | (I) Reserves + Loan. | | (B) Banks Assets | (II) Central Bank of a country. | | (C) Lender of the last Resort | (III) Aggregate Monetary Resources. | | (D) M₃ | (IV) Cash Reserve Ratio. | Choose the correct answer from the options given below: 1. (A) - (I), (B) - (II), (C) - (III), (D) - (IV) 2. (A) - (IV), (B) - (I), (C) - (II), (D) - (III) 3. (A) - (I), (B) - (II), (C) - (IV), (D) - (III) 4. (A) - (III), (B) - (IV), (C) - (I), (D) - (II)

In a situation of Balance of payments deficit, which of the following will be true?

Defense of the nation is a service provided by our armed forces. This service is. 1. Non -Public good which is non-rival and non excludable in consumption. 2. Public good which is non-rival and non excludable in consumption. 3. Non -Public good which is rival and non-excludable in consumption. 4. Public good which is rival and non-excludable in consumption.

Match List-I with List-II | List-I | List-II | |---|---| | (A) Macroeconomics | (I) We study the behavior of aggregate measures of the performance of the economy. | | (B) Mixed economy | (II) All important decisions regarding production, exchange and consumption of goods and services are made by the government. | | (C) Market | (III) Some important decisions are taken by the government and the economic activities are by and large conducted through the market. | | (D) Centrally planned economy | (IV) A set of arrangements where economic agents can freely exchange their endowments or products with each other. | Choose the correct answer from the options given below: 1. (A) - (I), (B) - (III), (C) - (II), (D) - (IV) 2. (A) - (I), (B) - (II), (C) - (III), (D) - (IV) 3. (A) - (I), (B) - (III), (C) - (IV), (D) - (II) 4. (A) - (III), (B) - (IV), (C) - (I), (D) - (II)

Among the following, what is assumed as the appropriate justification for taking the price level as fixed? 1. An economy with unskilled workforce. 2. An economy having scarcity of resources. 3. An economy with excess use of resources. 4. An economy with unused resources.

Which of the following is incorrect about accommodating transactions of the BoP?

Addition to the stock of physical capital and changes in the inventory of a producer is known as: 1. Asset Appreciation. 2. Consumption. 3. Stock. 4. Investment.