C 80391 (Pages : 4) ಹ ச ர ர
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SIXTH SEMESTER B.A/B.Sc. DEGREE EXAMINATION, MARCH 2020
(CUCBCSS—UG)

Economics
ECO 6B 11—MACRO ECONOMICS-II
Time : Three Hours Maximum : 80 Marks
Section A (Objective Type Questions)

Answer all twelve questions.
Each question carries ¥2 mark.

1. Hyper inflation is generally caused by :
a) Wide spread shortages due to a bad harvest.
b) Continuous expansion of money supply to finance the deficit of the government.
८) A large decline in corporate profit.
१) ` A trade surplus due to the maximization of export and minimization of import.

2. Speculative demand for money depends on :

a) Income. b) Investment.
c) Rate of interest. d) Money supply.
3. In the equation MV = PT, T represents :
a) Transaction motive. b) Techniques of production.
c) Type of money. d) Trade volume.

4. Inthe classical theory of employment what ensures perfect clearing of the market :
a) Flexibility of interest rate.
b) Flexibility of wage rate.
c) Flexibility of prices of the commodity.
d) Classical assumption of perfect competition in the product market.
5. Macroeconomics is otherwise called :
a) Consumption theory. b) Price theory.
c) Income theory. d) Value theory.

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