Macro-Economic Analysis-Macro-Economic Equilibrium [NTA-NET (UGC-NET) Economics & Development (01)]: Questions 1 - 4 of 16

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Question 1

Appeared in Year: 2014

Question MCQ▾

The crowding out effect is zero when (June)

Choices

Choice (4)Response

a.

IS curve is falling and LM curve is rising

b.

Money demand is perfectly interest inelastic, or investment is perfectly interest elastic

c.

There is liquidity trap, or investment is perfectly interest inelastic

d.

All of the above

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Question 2

Appeared in Year: 2017

Question MCQ▾

As per IS-LM framework, an increase in government expenditure will result in:

Choices

Choice (4)Response

a.

Increase in income and interest rate

b.

Decrease in investment and interest rate

c.

Decrease in income and interest rate

d.

Increase in income only

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Question 3

Appeared in Year: 2013

Question MCQ▾

Assuming fixed prices, which of the following statements are true?

1. Monetary policy is more effective, flatter the IS-curve.

2. Fiscal policy is less effective, flatter the LM curve.

3. Fiscal policy is more effective, flatter the LM curve.

4. Monetary policy is ineffective and fiscal policy is fully effective in liquidity trap. (September)

Choices

Choice (4)Response

a.

1,3, 4

b.

2,3, 4

c.

1,2, 4

d.

None of the above

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Question 4

Appeared in Year: 2015

Question MCQ▾

Slope of the LM curve depends upon which of the followings? (June)

Choices

Choice (4)Response

a.

Interest elasticity of investments

b.

Interest elasticity of demand for money

c.

Interest elasticity of income

d.

Question does not provide sufficient data or is vague

Edit