MCQ Questions
Q.1.
The real rate of interest is
  • 0%
    the money rate of interest adjusted for inflation.
  • 0%
    the price of one currency in terms of another currency.
  • 0%
    money rate of interest minus the expected inflation rate.
  • 0%
    the interest rate in the loanable funds market.
Q.2.
The exchange rate is
  • 0%
    the money rate of interest adjusted for inflation.
  • 0%
    the price of one currency in terms of another currency.
  • 0%
    money rate of interest minus the expected inflation rate.
  • 0%
    the interest rate in the loanable funds market.
Q.3.
The price of one country's currency in terms of another's is called
  • 0%
    resource market.
  • 0%
    the interest rate in the loanable funds market.
  • 0%
    the exchange rate.
  • 0%
    the money rate of interest adjusted for inflation.
Q.4.
In the AD/AS model, the aggregate demand for goods and services is composed of the purchases made by
  • 0%
    money rate of interest minus the expected inflation rate.
  • 0%
    real interest rate = money interest rate − inflationary premium
  • 0%
    individuals have sufficient time to modify their behavior in response to price changes.
  • 0%
    consumers, investors, governments, and foreigners (net exports).
Q.5.
Which of the following equations is accurate?
  • 0%
    the interest rate in the loanable funds market.
  • 0%
    real interest rate = money interest rate − inflationary premium
  • 0%
    Businesses buy resources from households, and households use their income to buy goods and services from businesses.
  • 0%
    money rate of interest minus the expected inflation rate.
Q.6.
The aggregate demand curve indicates the relationship between
  • 0%
    the general price level and the aggregate quantity of goods and services demanded.
  • 0%
    the deliberate control of the money supply to achieve macroeconomic goals.
  • 0%
    the general level of prices and the quantity of goods and services that domestic firms will supply.
  • 0%
    the interest rate in the loanable funds market.
Q.7.
The short-run aggregate supply curve shows the relationship between
  • 0%
    market that coordinates the borrowing and lending of individuals and firms.
  • 0%
    the general price level and the aggregate quantity of goods and services demanded.
  • 0%
    the general level of prices and the quantity of goods and services that domestic firms will supply.
  • 0%
    the deliberate control of the money supply to achieve macroeconomic goals.
Q.8.
The actions of borrowers and lenders are coordinated by
  • 0%
    the exchange rate.
  • 0%
    real interest rate = money interest rate − inflationary premium
  • 0%
    the interest rate in the loanable funds market.
  • 0%
    the money rate of interest adjusted for inflation.
Q.9.
The market that coordinates the exchange of productive inputs between the household and business sectors is the
  • 0%
    the exchange rate.
  • 0%
    resource market.
  • 0%
    consumers, investors, governments, and foreigners (net exports).
  • 0%
    long-run aggregate supply curve.
Q.10.
The real rate of interest equals the
  • 0%
    the price of one currency in terms of another currency.
  • 0%
    money rate of interest minus the expected inflation rate.
  • 0%
    the money rate of interest adjusted for inflation.
  • 0%
    real interest rate = money interest rate − inflationary premium