[{"id":213809,"question":"In which of the following situations will an increase in the money supply have no effect upon equilibrium iincome.","choices":[{"text":"LM is steeply sloped and IS is relatively that","value":"A"},{"text":"LM is vertical and IS is stopped","value":"B"},{"text":"LM is steeply sotped and IS is vertical","value":"C"},{"text":"LM is relatively flat as is IS","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213808,"question":"Ahmed uses dummy variables in order to determine the monthly seasonal effect in her regression model. The number of dummy variables used will be.","choices":[{"text":"5","value":"A"},{"text":"11","value":"B"},{"text":"12","value":"C"},{"text":"1","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213807,"question":"Ahmed regression model yields a Durbin Watson d statistic whose value is 0.002. The results indicate.","choices":[{"text":"Positive serial correlation","value":"A"},{"text":"the presence of multicollinearity","value":"B"},{"text":"No serial correlation","value":"C"},{"text":"Negative serial correlation","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213806,"question":"If the reserve deposit ratio is 0.25 and the ratio of currency in circulation to deposits is 0.3, the potential money multiplier will have a value of.","choices":[{"text":"2.36","value":"A"},{"text":"0.42","value":"B"},{"text":"1.20","value":"C"},{"text":"0.96","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213805,"question":"If government spending of Rs. 10 and a lump sum tax of Rs.10 is added, the empirical equation for the new IS curve becomes.","choices":[{"text":"Y = 285 + 20 I","value":"A"},{"text":"Y = 270 - 10 i","value":"B"},{"text":"Y = 285 - 50 i","value":"C"},{"text":"Y = 210 - o.5 i","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213804,"question":"Given the data above, the empirical equation for the IS curve is.","choices":[{"text":"Y = 275 + 10 i","value":"A"},{"text":"Y = 225 + 50 i","value":"B"},{"text":"Y = 250 - 10 i","value":"C"},{"text":"Y = 275 - 501","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213803,"question":"The multiplier that applies to changes in autonomous investment is identical to changes in.","choices":[{"text":"Autonomous government expenditures","value":"A"},{"text":"Autonomous consumption expenditures","value":"B"},{"text":"Autocoups exports","value":"C"},{"text":"All of the responses above","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213802,"question":"Given the saving equation S = - 50 + 0, 20 Y, where s is saving and Y is income.","choices":[{"text":"The break even level of income is 240","value":"A"},{"text":"Dissaving takes place if income is 300","value":"B"},{"text":"Consumption expenditures and saving are equal at an income level of 500","value":"C"},{"text":"The MPS is constant for all levels of income","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213801,"question":"An increase in investment leads to an increase in income and consumer spending, which in turn leads to a further increase in investment spending This is example of.","choices":[{"text":"The expenditure multiplier","value":"A"},{"text":"Explosive gowth","value":"B"},{"text":"Hyperinflation","value":"C"},{"text":"Interaction of multiplier and accelerator","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213800,"question":"In closed economic model aggregate demand is not sensitive to.","choices":[{"text":"Interest rates","value":"A"},{"text":"Exchange rates","value":"B"},{"text":"Price level","value":"C"},{"text":"Tax policy","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213799,"question":"A Rs.10 increase in autonomous investment spending shifts IS","choices":[{"text":"Rightward by Rs.10","value":"A"},{"text":"Leftward Rs.10","value":"B"},{"text":"Rightward by Ke (Rs.10)","value":"C"},{"text":"Leftward by Ke (Rs.10)","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213798,"question":"When investment spending is negatively related to the rate of interest, equilibrium income in the goods market.","choices":[{"text":"Is unrelated to the rate of interest","value":"A"},{"text":"Is positively related to the rate or interest","value":"B"},{"text":"Inversely related to the rate of interest","value":"C"},{"text":"Falls as the rate of interest decreases","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213797,"question":"When total utility becomes maximum then marginal utility will be.","choices":[{"text":"Minimum","value":"A"},{"text":"Average","value":"B"},{"text":"Zero","value":"C"},{"text":"Negative","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213796,"question":"For interior commodities income effect is.","choices":[{"text":"Zero","value":"A"},{"text":"Negative","value":"B"},{"text":"Infinite","value":"C"},{"text":"Positive","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213795,"question":"An expansionary supply side shock results in.","choices":[{"text":"An increased real national income","value":"A"},{"text":"The aggregate supply curve shifting to the left","value":"B"},{"text":"The aggregate demand curve shifting to the right","value":"C"},{"text":"The aggregate demand curve shifting to the left","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213794,"question":"If government tax function is T = 80 + .6 Y and the marginal propensity to consume is a constant 8 and increase in GNP of Rs.50 would cause consumption to.","choices":[{"text":"Increase by Rs.16","value":"A"},{"text":"Decrease by Rs.16","value":"B"},{"text":"Increase by Rs.40","value":"C"},{"text":"Decrease by Rs.30","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213793,"question":"A decrease in the marginal propensity to import will lead to.","choices":[{"text":"An increase in GNP","value":"A"},{"text":"Lower the multiplier","value":"B"},{"text":"An increase in imports","value":"C"},{"text":"A decrease in imports","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213792,"question":"The econometric problem of errors in variables leads to","choices":[{"text":"Ballasted estimates of regression coefficients.","value":"A"},{"text":"Autocorrelation","value":"B"},{"text":"Unbiased estimates of regression coefficients but non minimum variance of estimated coefficients.","value":"C"},{"text":"None of the above","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213791,"question":"If the price level for an economy was 100 in 1984 , 115 in 1985 and 125 in 1986 the rate of inflation between 1985 and 1986 was.","choices":[{"text":"105","value":"A"},{"text":"8%","value":"B"},{"text":"8.7%","value":"C"},{"text":"17.5%","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213790,"question":"The Laffer curve depicts","choices":[{"text":"A trade off between tax rates and government receipts","value":"A"},{"text":"Price levels and real income","value":"B"},{"text":"government deficits and unemployment","value":"C"},{"text":"Tax rates and infixation","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213789,"question":"When GNP is Rs.500 billion and consumption expenditures are Rs.300 billion.","choices":[{"text":"the MPC is 6","value":"A"},{"text":"The MPS is 4","value":"B"},{"text":"The Multiplier is 2.5","value":"C"},{"text":"None of the above","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213788,"question":"If nominal GNP were Rs.1000 ballooning 1976 and Rs.2200 billion in 1986, and the implicit GNP deflator was. 1.2 in 1976 and 1.6 in 1986 concluded that .","choices":[{"text":"Real GNP increased by approximately Rs. 542 billion from 1976 to 1986","value":"A"},{"text":"The price level fell from 1976 to 1986","value":"B"},{"text":"Real GNP increased by 35%","value":"C"},{"text":"Nominal GNP increased by 80%","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213787,"question":"If investors expectations concerning the future are positive and thus increase investment at every interest rate the.","choices":[{"text":"IS curve would shift up","value":"A"},{"text":"IS curve would shift down","value":"B"},{"text":"LM curve would shift down","value":"C"},{"text":"IS and LM curves will not shift","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213786,"question":"When the supply of money increases.","choices":[{"text":"The LM curve will shift in","value":"A"},{"text":"The LM curve will shit out","value":"B"},{"text":"The demand for money will decrease","value":"C"},{"text":"The demand for money will increase","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213785,"question":"A commercial bank has a required reserve ratio of 20% and desires to hold 5% in excess reserves. the bank receives a Rs. 10,000 deposit. It it abides by the required reserve ration and its desire to hold excess reserves the bank can make a loan of a most.","choices":[{"text":"Rs.7500","value":"A"},{"text":"Rs.2500","value":"B"},{"text":"Rs.5000","value":"C"},{"text":"Rs.30,000","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213784,"question":"If the sampi is accepted as coming from a universe with a mean of Rs.500 or greater when if doesn't.","choices":[{"text":"A Type II error is made","value":"A"},{"text":"A type I error is mad","value":"B"},{"text":"The alternative hypothesis is correct.","value":"C"},{"text":"A and C are correct","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213783,"question":"The hypothesis would the tested with","choices":[{"text":"A two tailed test","value":"A"},{"text":"A one tailed test with the rejection region in the left tail","value":"B"},{"text":"a one tailed test with the rejection region on the right tail","value":"C"},{"text":"The normal distiribution","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213782,"question":"A firm's total labor cost when six workers are employed is Rs.580 When seven workers are employed the total labor cost is Rs.700 the Rs. 120 change in total labor cost represents.","choices":[{"text":"Marginal physical product","value":"A"},{"text":"Marginal resources cost","value":"B"},{"text":"Marginal cost","value":"C"},{"text":"Marginal revenue","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213781,"question":"Which of the following factors will cause the demand curve for labor to shift to the right.","choices":[{"text":"The demand for the product produced by labor declines.","value":"A"},{"text":"The prices of substitute imputes falls","value":"B"},{"text":"The productivity of labor increases","value":"C"},{"text":"None of the above","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213780,"question":"When the Central Bank initiates actions which will lead to an increase in the supply of money IS -LM models tell us to expect that.","choices":[{"text":"The interest rate will rise","value":"A"},{"text":"The interest rate will decline","value":"B"},{"text":"The price level will not change","value":"C"},{"text":"Investment will decline","value":"D"},{"value":"E"}],"correctAnswer":2}]