NAT IIM Management Science Economy Online Test for Pakistani Students

NAT II Management Science Economy

Sr. #	Questions	Answers Choice
1	If money supply is fixed by the central bank then in interest rate money supply space, money supply curve will be:	Horizontal Vertical Negatively sloped Positively sloped
2	Which of the following will be TRUE if real income rose and the interest rate fell following an increase in government purchases?	IS curve must be vertical LM curve must be vertical Central Bank must have increased the money supply at the same time Central Bank must have decreased the money supply at the same time
3	A tax on the accounting profits of corporations is known as:	Sales tax Excise tax Corporate income tax Personal income tax
4	"Government collects zero revenue if the tax rate is 0% and if the tax rate is 100%." Which of the following best describes this statement?	Consumption curve Supply curve Laffer curve Investment curve
5	The interest rate parity is the basic identity that relates which of the following?	Interest rates and exchange rates Interest rates and inflation rate Exchange rates and inflation rate Discount rate and inflation rate