Category: Money, Interest Rates And Output

A. goods market for the given interest rate
B. goods market for the given level of government spending
C. money market for the given level of the money supply
D. money market for the given value of aggregate output

A. A sale of government securities by the central bank
B. An increase in the level of aggregate output
C. An increase in the discount rate
D. A decrease in the price level

A. both monetary and fiscal policy are ineffective
B. monetary policy is effective but fiscal policy is ineffective
C. monetary policy is ineffective but fiscal policy is effective
D. both monetary and fiscal policy are effective

A. Rs 10,00
B. Rs 1,000
C. Rs 9,000
D. Rs 0

A. required reserve ratio
B. profit margin
C. excess reserves
D. net worth

A. Profit motive
B. Precautionary motive
C. Transactions motive
D. speculation motive

A. downward sloping over all levels of output
B. upward sloping over all levels of output
C. horizontal until it reaches full capacity and then becomes vertical
D. vertical until it reaches full capacity and then becomes horizontal

A. incomes
B. overseas investment
C. imports
D. interest rates

A. a reduction in the taxes banks pay on their profits.
B. an increase in the required reserve ratio
C. an increase in the discount rate
D. the Central bank buying government securities in the open market

A. the economy moves up the LM curve
B. The LM curves shifts to the left
C. The economy moves down the LM curve
D. The LM curve shift to the right