A. reduce its stock of foreign assets
B. increase its stock of foreign assets
C. increases its savings
D. increases its foreign currency reserves
Economics Mcqs
The percentage of the working age population that is part of the workforce is known as the ?
A. workers
B. non-slackers
C. diligent rate
D. participation rate
A rise in the real exchange rate will …….. the competitiveness of the domestic economy?
A. increase
B. reduce
C. do nothing to
D. None of the above
Policies to encourage productivity do not include ?
A. building more retail outlets
B. encouraging risk-taking
C. encouraging innovation
D. encouraging R & D
perfect international capital mobility suggests that international funds will be responsive to …….. differentials?
A. current account
B. interest rate
C. tax
D. price
Identify below what does NOT affect productivity ?
A. Public investment in education
B. Innovation and the application of new technology
C. The phase of the lunar cycle
D. Private investment in new physical caital
With fixed exchange rates and no private currency flows, when the central bank buys domestic currency the domestic money supply is ?
A. increased
B. unaffected
C. reduced
D. None of these
Supply side policies are considered effective in ?
A. Increasing government expenditure
B. reducing taxation
C. increasing the money supply
D. encouraging technological progress
A fixed exchange rate, plus perfect capital mobility …….. the scope for monetary policy ?
A. enhances
B. undermines
C. encourages
D. facilitates
Potential output can be increased by …. or by ……?
A. increasing the use of labor increasing the use of land
B. increasing the use of capital increasing the use of labour
C. increasing the use of land increasing the use of capital
D. increasing the use of all inputs, technical advances