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.Management Sciences
Category: Macroeconomic Issues and Analysis
If a nation’s interest rates are relatively low compared to those of other countries. then the exchange value of its currency will tend to ?
A. not be affected
B. appreciate
C. depreciate
D. fluctuate more than if interest rates were high
If the Pakistan takes part in a war in the Middle East, then the exchange value of its currency will tend to ?
A. depreciate
B. not be affected
C. fluctuate more than if it were at peace
D. appreciate
Which does the government not control directly ?
A. Spending on health
B. Spending on defence
C. Firms investment decisions
D. Spending on education
The situation when a country imports more than it exports is ?
A. a recession
B. a trade surplus
C. a trade deficit
D. an expansion.
When the $/£ exchange rate rises the pound _____ and when the $/£ rates falls the pound ________?
A. depreciates, appreciates
B. revalues, devalues
C. appreciates, depreciates
D. becomes more expensive becomes cheaper
The record of country’s imports and exports of goods is called its ?
A. balance of trade:
B. balance of payments
C. balance of payments on current account
D. visible trade balance
The percentage of the labour force that is unemployed is the ?
A. Unemployment population ratio.
B. Unemployment rate
C. employment rate
D. Labour force rate.
If one country, with floating exchange rates, has higher inflation than its competitors we would expect its exchange rate to ?
A. appreciate
B. depreciate
C. revalue
D. be in short supply
The demand for ice-cream is lower outside of summer causing lower demand for ice-cream salesman if they cannot find other work, this is called _______ unemployment?
A. Regional
B. structural
C. seasonal
D. demand-deficient
A fixed exchange rate, plus perfect capital mobility ________ the scope for monetary policy ?
A. enhances
B. undermines
C. encourages
D. facilitates
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