This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Macroeconomics – Quiz 92 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 92 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. For example, a bank sets loan interest to customers at a fixed 7% and inflation at that time is at the level of 9%, then as a result of this inflation the bank will experience..... A) 2% profit. B) 2% loss. C) Neither profit nor loss. D) Can not be determined. Show Answer Correct Answer: B) 2% loss. 2. As per relative income hypothesis, in the long run, what is the relationship between MPC and APC? A) APC > MPC. B) APC < MPC. C) APC = MPC. D) None of these. Show Answer Correct Answer: C) APC = MPC. 3. Refer to Table 1 below. The value of net factor payments to the rest of the world in billions of dollars isTable 1 Compensation of employees 2000Indirect taxes 234Direct taxes Subsidies 100Payments of Factor income to the rest of the world 40Receipts of Factor income from the rest of the world 15 A) 40. B) 15. C) 55. D) 25. Show Answer Correct Answer: D) 25. 4. Professional Labor has what type of human capital? A) Lowest. B) Highest. C) Middle. D) None. Show Answer Correct Answer: B) Highest. 5. Which of the following regions includes mostly developing nations? A) Sub-Saharan African countries. B) Europe. C) North America. D) Scandinavian countries. Show Answer Correct Answer: A) Sub-Saharan African countries. 6. Exports minus imports may be defined as: A) Net imports. B) Net exports. C) Net investment. D) Foreign exchange. Show Answer Correct Answer: B) Net exports. 7. Someone buys a house with a 30 year fixed rate loan A) Helped by inflation. B) Hurt by inflation. Show Answer Correct Answer: A) Helped by inflation. 8. Which of the following is NOT a component of Aggregate Demand? A) Consumption (C). B) Investment (I). C) Exports (X). D) Spare capacity. Show Answer Correct Answer: D) Spare capacity. 9. The overall supply of goods in an economy is known as A) Aggregate supply. B) Aggregate demand. C) Open market supply. D) Aggregate productivity. Show Answer Correct Answer: A) Aggregate supply. 10. Why do countries experiencing hyperinflation continue to print so much money? A) Sources of government funding no longer exist. B) Sufficient Tax Revenue. C) People want money. D) Lending money to other countries. Show Answer Correct Answer: A) Sources of government funding no longer exist. 11. What does unemployment rate measure? A) The number of people employed. B) The number of people actively seeking employment. C) The percentage of the labor force without a job. D) The percentage of the population without a job. Show Answer Correct Answer: C) The percentage of the labor force without a job. 12. Which of the following might be a sign of an economic trough? A) Low unemployment. B) Recession. C) High GDP. D) Stable CPI. Show Answer Correct Answer: B) Recession. 13. Interest rate that the Federal Reserve System charges on loans to the nation's financial institutions. A) Discount rate. B) Prime rate. C) Monetary rate. D) Explicit rate. Show Answer Correct Answer: A) Discount rate. 14. The Federal Reserve System conducts its business directly with A) Product markets and factor markets. B) Individuals and firms. C) Stock markets and bond markets. D) The government and banks. Show Answer Correct Answer: D) The government and banks. 15. Through open market operations, the Federal Reserve buys and sells government securities to influence the supply of bank reserves. When the Fed wants to increase excess reserves held by banks, it does what? A) Sell bonds. B) Buy bonds. C) Increase interest rates. D) Increase reserve ratios. Show Answer Correct Answer: B) Buy bonds. 16. The use of money and credit controls to change the macroeconomy is A) Monetary policy. B) Considered ineffective by most economists. C) No longer used in the United States. D) Fiscal policy. Show Answer Correct Answer: A) Monetary policy. 17. If aggregate demand and real GDP are slowly beginning to rise and the unemployment rate is just beginning to fall, which conclusion is most likely? A) The economy is in a recovery phase. B) The economy is facing a slowdown. C) There are serious risks of high inflation. D) Aggregate supply is sharply decreasing. Show Answer Correct Answer: A) The economy is in a recovery phase. 18. Which of the following lies in the field of macroeconomics? A) National income. B) The unemployment situation in the country. C) The inflation of Laos. D) All the points are correct. Show Answer Correct Answer: D) All the points are correct. 19. A rise in prices is called ..... A) Deflation. B) Inflation. C) GDP. D) Real GDP. Show Answer Correct Answer: B) Inflation. 20. If the interest rate is 2%, what is the present value of $ 1 paid to you in one year? A) Less than $ 1. B) $ 1. C) $ 1.02. D) $ 1.04. E) $ 1.20. Show Answer Correct Answer: A) Less than $ 1. ← PreviousNext →Related QuizzesEconomics QuizzesMacroeconomics Quiz 1Macroeconomics Quiz 2Macroeconomics Quiz 3Macroeconomics Quiz 4Macroeconomics Quiz 5Macroeconomics Quiz 6Macroeconomics Quiz 7Macroeconomics Quiz 8Macroeconomics Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books