www.ThinkITI.com

Home
MCQ
Search
Free Apps
Important
Study Groups
Contact Us
Policy

Home
MCQ
Objective Questions
GK
GK Set-1
Economics
Macro Economics
47

Macro Economics MCQ (GK Set-1) with Answers

47) Suppose the market interest rate is equal to 5%. The price of a bond that promises one payment of Rs.100 in one year would be equal to:

Rs.100.00 - Rs.5.00

Rs. 100.00

Rs.100.00 + Rs.5.00

Rs.100 Rs. 1.05

Answer is:

Rs.100 Rs. 1.05

Macro Economics MCQ (GK Set-1) with Answers

For more MCQ's Click Here

Related Macro Economics MCQ (GK Set-1) with Answers

48) The difference between a nation’s current account surplus and its primary account surplus is its

net asset position with respect to the rest of the world

net investment income from abroad

balance of payments

net sovereign borrowing

Answer is:

net investment income from abroad

49) If, for Crusoe’s current intertemporal consumption pattern (satisfying his intertemporal budget constraint), his marginal rate of intertemporal substitution is 1 and the real rate of interest is positive, then

the interest rate will fall to zero.

Crusoe could increase his lifetime utility by consuming more today.

Crusoe could increase his lifetime utility by consuming less today

Crusoe is necessarily a borrower

Answer is:

Crusoe could increase his lifetime utility by consuming less today

50) What is the permanent income that corresponds to present value of the two-period-income path Y1=100, Y2=125 for the real interest rate r=.5?

110

112

114

116

Answer is:

110

51) Crusoe begins with an endowment A. Point R is the consumption combination he would choose at real interest rate r and point R is the consumption combination he would choose at real interest rate r. Which of the following statements is true?

Crusoe is a lender today

Crusoe’s wealth has decreased because of the change in the real interest rate

The marginal rate of intertemporal substitution at R is equal to r.

The change in interest rate does not decrease Crusoe’s utility since he is free to keep his original endowment A if he so chooses

Answer is:

Crusoe’s wealth has decreased because of the change in the real interest rate

Macro Economics MCQ (GK Set-1) with Answers

For more MCQ's Click Here