MACRO ECONOMICS QUIZ (10 MARKS) 15 MARCH 2024

1. Multiplier is  related to MPC ?

• A ) Directly

• B) Indirectly

• C) No relation

• D) Both A & B

2. Ratio of change in income and investment?

• A) MPC

• B) APC

• C) Multiplier

• D) accelerator

3. Expenditure on the purchase of goods which add to the existing stock of capital?

• A) Savings

• B) Consumption

• C) Investment

• D) None of the above

4. The relation between the income & investment is?

• A) Direct

• B) Indirect

• C) No relation

• D) None of the above

5. With increase in income & profit this investment also increases?

• A) Autonomous Investment

• B) Public Investment

• C) Net Investment

• D) Induced Investment

6. Ratio of change in investment and change in income is:

• A) Average propensity to consume

• B) Marginal propensity to invest

• C) Marginal propensity to consume

• D) Average propensity to invest

7. If propensity to consume rises, the MEC will?

• A) Rises

• B) Fall

• C) no effect

• D) No change

8. When savings rises, Multiplier will?

• A) Rises

• B) Fall

• C) no effect

• D) No change

9. If people have high liquidity preferences, the multiplier will?

• A) Rises

• B) Fall

• C) no effect

• D) No change

10. When ROI increases, the investment?

• A) Fall

• B) Rise

• C) No effect

• D) None of the Above