[{"id":214885,"question":"A fixed exchange rate, plus perfect capital mobility _______ the scope for monetary policy.","choices":[{"text":"Enhances","value":"A"},{"text":"Undermines","value":"B"},{"text":"Encourages","value":"C"},{"text":"Facilitates","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":214884,"question":"In the absence of international capital controls, central banks set ______ to provide the correct incentive for speculators","choices":[{"text":"Money supply targets","value":"A"},{"text":"Income policy","value":"B"},{"text":"Interest rates","value":"C"},{"text":"Inflation targets","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":214883,"question":"With fixed exchange rates and no private currency flow, when the central bank buys domestic currency the domestic money supply is.","choices":[{"text":"Increased","value":"A"},{"text":"Unaffected","value":"B"},{"text":"Reduced","value":"C"},{"text":"All of the above","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":214882,"question":"When capital mobility is perfect, interest rate differentials will tend to be offset by","choices":[{"text":"Price differences.","value":"A"},{"text":"Balance of payments differences.","value":"B"},{"text":"Current account differences.","value":"C"},{"text":"Expected exchange rate changes","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":214881,"question":"Perfect international capital mobility suggests that international funds will be responsive to _______ differentials.","choices":[{"text":"Current account","value":"A"},{"text":"Interest rate","value":"B"},{"text":"Tax","value":"C"},{"text":"Price","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":214880,"question":"Within circular flow of income, an increase in domestic income iwll lend to increase.","choices":[{"text":"Exports","value":"A"},{"text":"Taxes","value":"B"},{"text":"Inventories","value":"C"},{"text":"Imports","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":214879,"question":"A rise in the real exchange rate will __ the competitiveness of the domestic economy.","choices":[{"text":"Increase","value":"A"},{"text":"reduce","value":"B"},{"text":"do nothing do","value":"C"},{"text":"all of these","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":214878,"question":"Starting from a position of internal and external balance a reduction in aggregate demand will cause a current account.","choices":[{"text":"Deficit","value":"A"},{"text":"Surplus","value":"B"},{"text":"Revaluation","value":"C"},{"text":"Devaluation","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":214877,"question":"A current account deficit means that a country may.","choices":[{"text":"Reduce its stock of foreign assets","value":"A"},{"text":"Increases its stock of foreign assets","value":"B"},{"text":"Increases its savings","value":"C"},{"text":"Increases its foreign currency reserves.","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":214876,"question":"In a fixed exchange rate regime, the central bank will intervene by __ pounds to ______ the exchange rate.","choices":[{"text":"Selling, increase","value":"A"},{"text":"buying , increase","value":"B"},{"text":"selling, reduce","value":"C"},{"text":"both b and c","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":214875,"question":"When the S/L exchange rate rises the pounds______ and whent he S/L rate falls the pounds.","choices":[{"text":"depreciates, appreciates","value":"A"},{"text":"revalues, devalues","value":"B"},{"text":"appreciates, deprecates","value":"C"},{"text":"becomes more expensive, becomes cheaper","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":214874,"question":"If British Residents want more French francs to purchases more fresh wine, other things equal than the equilibrium value of the pound against the French farce will.","choices":[{"text":"Rise","value":"A"},{"text":"fall","value":"B"},{"text":"not changes","value":"C"},{"text":"fluctuate","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":214873,"question":"Possible causes of involuntary unemployment are","choices":[{"text":"Minimum wage agreements","value":"A"},{"text":"Trade unions","value":"B"},{"text":"Scale economies","value":"C"},{"text":"All of the abvoe","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":214872,"question":"The abolition of income tax would probably ________ the number of workers in employment and____________ the equilibrium. rate of unemployment.","choices":[{"text":"increase ; decrease","value":"A"},{"text":"increase ; increase","value":"B"},{"text":"reduce ; increase","value":"C"},{"text":"reduce ; reduce","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":214871,"question":"If the income tax rate changes from 30% to 40% on incomes over L 30,000 and a person's income is l 31,000 then her marginal tax rate is.","choices":[{"text":"30%","value":"A"},{"text":"10%","value":"B"},{"text":"70%","value":"C"},{"text":"40%","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":214870,"question":"Polices to reduce unemployment by reducing union power tax cut reduction is unemployment benefit and investment. subsidies are examples of.","choices":[{"text":"Keynesian polices","value":"A"},{"text":"Supply side policies","value":"B"},{"text":"Monetarist policies","value":"C"},{"text":"Classical policies","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":214869,"question":"If some body is prepared to work at the going wage rate but cannot find work than they are victims of.","choices":[{"text":"Voluntary unemployment","value":"A"},{"text":"Classical unemployment","value":"B"},{"text":"Frictional unemployment.","value":"C"},{"text":"All of the above","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":214868,"question":"We would normally expect the size of the labour force to be ____ than the number of workers willing to accept job offers at any real wage rate.","choices":[{"text":"Smaller","value":"A"},{"text":"Larger","value":"B"},{"text":"the same size","value":"C"},{"text":"None of these","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":214867,"question":"An advocate of the classical model of the economy would claim that unemployment a created when the ___________ is above its equilibrium level in the.","choices":[{"text":"Price level, agregate economy","value":"A"},{"text":"Tax rate, government ebudget","value":"B"},{"text":"Wage rate, labour market","value":"C"},{"text":"Interest rate, market for loanable funds","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":214866,"question":"A person who is made redundant because of the contraction of an industry is a victim of.","choices":[{"text":"Frictional unemployment","value":"A"},{"text":"Demand deficient unemployment","value":"B"},{"text":"Classical unemployment","value":"C"},{"text":"Structural unemployment","value":"D"},{"value":"E"}],"correctAnswer":4}]