Economics MCQs

A. The marginal propensity of expenditure
B. The marginal propensity to save
C. The average propensity to consume
D. The marginal propensity to consume

A. Previous decisions
B. Absolute income
C. Relative income
D. Permanent income

A. Decrease
B. Remain constant
C. Increase
D. Either increase or decrease depending on the size of the change in investment

A. Reduces the interest rate
B. Buys and sells bonds and securities
C. Increases taxation
D. Increase the exchange rate

A. Exogenous
B. Constant
C. Endogenous
D. Independent

A. Increase aggregate demand
B. Increase savings
C. Decrease consumption
D. Decrease exports

A. Reduce the interest rate
B. Increase the interest rate
C. Increase inflation
D. Decrease deflation

A. Individuals hold money just in case an emergency happens
B. Individuals hold money to buy things
C. Individuals hold money rather than other assets because they are worried about the price of the other assets falling
D. Individuals hold money to shop

A. An injection that increases aggregate demand
B. A withdrawal that increase aggregate demand
C. An injection that decreases aggregate demand
D. A withdrawal that decrease aggregate

A. Accelerator
B. Aggregate demand
C. Monetarism
D. Multiplier