Category: Economics Mcqs

Which of the following statements regarding the loanable funds market is not true ?

A. A decrease in a country’s net capital outflow shifts the demand for loanable funds to the left
B. An increase in domestic investment shifts the demand for loanable funds to the right
C. An increase in a country’s net capital outflow shifts the supply of loanable funds to the left
D. An increase in a country’s net capital outflow raises its real interest rate

Cyclical unemployment is the ?

A. Portion of unemployment that is due to the normal working of the labour market
B. Portion of unemployment that is due to changes in the structure of the economy that results in a significant loss of jobs in certain industries.
C. Unemployment that results when people become discouraged about their chances of finding a job so they stop looking for work.
D. Unemployment that occurs during recessions and depressions.