AP (Advanced Placement) Macroeconomics: Questions 186 - 188 of 750

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Question 186

Appeared in Year: 2015 (NET)

Question

MCQ▾

An interest rate risk means: (June)

Choices

Choice (5)Response

a.

When borrowers fail to fulfill the term of the loan contract

b.

A rise in interest rate will raise the value of financial security in the secondary market

c.

When unintended inflation arises

d.

A rise in interest rate will mean a fall in the value of security in the secondary market

e.

None of the above

Question 187

Appeared in Year: 2015 (NET)

Question

MCQ▾

When LM curve is vertical , which of the following is correct? An increase in money supply will lead to: (December)

Choices

Choice (5)Response

a.

Fall in the level of income

b.

Rise in the rate of interest

c.

No change in the level of income

d.

Fall in interest rate

e.

Question does not provide sufficient data or is vague

Question 188

Appeared in Year: 2016 (NET)

Question

Match List-Ⅰ List-Ⅱ▾

Match the following: (Paper II)

List-Ⅰ (Group I)List-Ⅱ (Group II)
(A)

MPC = 0.4

(i)

K = 1.25

(B)

MPC = 0.2

(ii)

K = 1.66

(C)

MPS = 0.75

(iii)

K = 1.33

(D)

MPS = 0.5

(iv)

K = 2

Choices

Choice (5)Response
  • (A)
  • (B)
  • (C)
  • (D)

a.

  • (ii)
  • (i)
  • (iii)
  • (iv)

b.

  • (iii)
  • (iv)
  • (i)
  • (ii)

c.

  • (iv)
  • (iii)
  • (ii)
  • (i)

d.

  • (iii)
  • (i)
  • (iv)
  • (ii)

e.

All of the above

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