A. not be affected
B. appreciate
C. depreciate
D. fluctuate more than if interest rates were high
Economics Mcqs
If the Pakistan receives larger than expected revenues from exports then the exchange value of its currency will tend to ?
A. not be affected
B. fluctuate more than if exports were lower
C. depreciate
D. appreciate
If currency dealers expect the value of the pound to fall, the exchange value will tend to ?
A. depreciate
B. not be affected
C. fluctuate more than it would do therwise
D. appreciate
If the US economy is forecast to come out of recession because military expenditure has increase then the exchange value of the UK pound will tend to ?
A. depreciate
B. not be affected
C. fluctuate more than it would do therwise
D. appreciate
If the economy is in the expansionary phase of the business cycle, aggregate demand …. unemployment …. inflation …. payments is likely to move towards ….?
A. falls; rise; falls; surplus
B. is static; low; rise; deficit;
C. falls; falls; falls; surplus
D. rise; falls; rises; deficit
Economic growth is important because ?
A. People want less crime
B. People want to be happier
C. People want a better environment
D. People want higher incomes and more consumer goods.
If the economy is in the recessionary phase of the business cycle, aggregate demand … unemployment …. inflation … and the current account of the balance of payments is likely to move towards ….?
A. falls; falls; falls; surplus
B. is static; low; rises; deficit
C. falls; rises; falls; surplus
D. rises; falls; rises; deficit
Identify below what is NOT considered to be a cause of economic growth ?
A. An increase in the quantity of labor and capital
B. An increase in labor productivity
C. An increase in the money supply
D. An increase in technology
If British residents want more French francs to purchase more French cloths other things equal, then the equilibrium value of the pound against the French franc will ?
A. rise
B. fall
C. not change
D. fluctuate
The golden-rule saving rate is the rate of saving that ?
A. gets the highest rate of interest
B. maximizes the level of long-run investment
C. maximizes the level of long-run consumption
D. maximizes human capital