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இரப்ப : अल 6 464್ಷ್ಠ್ಷ66 64644466 60646 ‏ا‎

2° C 80391
Liquidity of a monetary asset means :
a) Ready acceptability and convertibility of a monetary asset.
b) Velocity of circulation of money.
€) Easy availability.
d) Monetary value of the asset is always an increasing one.
If the money supply is 5000 and nominal income is 40,000, the velocity of money is :
a) 80. b) 8.
८) 1/8. d) Undefined.
According to the quantity theory of money demand :
a) Interest rates have no effect on the demand for money.
b) An increase in interest rates will cause the demand for money to fall.
c) Adecrease in interest rates will cause the demand for money to increase.
d) Both (b) and (c) are correct.
Phillips curve shows that unemployment will return to the natural rate when :
a) Nominal wages are equal to expected wage.
b) Nominal wage growing faster than inflation.
c) Real wages are back at long run equilibrium level.
d) Inflation greater than nominal the growth of nominal wage.
To Okun’s law, a 1 % increase in unemployment results in a loss of GDP of :
a) 1%. b) 2%.
c) 3%. d) 5%.
After a contractionary or expansionary fiscal policy :
a) The LM curve shifts and we move along the IS curve.
b) The IS curve shifts and we move along the LM curve.
c) Both the IS and LM curves shift.
d) Neither the IS nor the LM curve shifts.
In India, which of the following is called reserve money or base money :
a) M1. ‏(ط‎

£) Ms. d) Mo.
4 (12 x % = 6 marks)