D:-Perfect elastic
Correct Answer:- Option-C
Question37:-The speculative demand for money is an inverse function of
A:-Income
B:-Marginal propensity to consume
C:-Marginal efficiency of capital
D:-Rate of interest
Correct Answer:- Option-D
Question38:-The constancy of labour share in the national income has been explained by Kalecki on the basis of
A:-The capitalist theory of distribution
B:-The monopoly theory of distribution
C:-The classical labour theory of value
D:-The Keynesian theory of national income
Correct Answer:- Option-B
Question39:-The marginal conditions to be fulfilled for the attainment of Pareto optimality were given by
A:-V. Pareto
B:-H. Robertson
C:-P. A. Samuelson
D:-Lerner and Hicks
Correct Answer:- Option-D
Question40:-Euler's product exhaustion theorem will be applied only in the case of production functions with
A:-Diminishing returns to scale
B:-Constant returns to scale
:-Increasing returns to scale
D:-Variable returns to scale
Correct Answer:- Option-B
Question41:-The fundamental assumption of Absolute Income Hypothesis is
A:-Consumption - Income relationship is reversible
B:-Consumption - Income relationship is irreversible
:-Consumption - Income relationship is passive
D:-Consumption - Income relationship is indeterminate
Correct Answer:- Option-A
Question42:-In the Fishers equation of exchange MV = PT, the variable 'V' stands for
A:-Value of money
-Velocity of circulation of money
C:-Volume of goods and services
D:-Value of goods and services
Correct Answer:- Option-B
Question43:-The level of unemployment at which a constant rate of inflation may be maintained is called
A:-Mean rate of unemployment
-Actual rate of unemployment
C:-Warranted rate of unemployment
D:-Natural rate of unemployment
Correct Answer:- Option-D
Question44:-Money that has no intrinsic value but established by a government decree is known as
A:-Fiat money
B:-Commodity money
C:-Plastic money
D:-Real money
Correct Answer:- Option-A
Question45:-Money supply curve in the Keynesian analysis of liquidity preference is
A:-Vertical straight line
-Horizontal straight line
C:-Downward slopping curve
D:-None of the above
Correct Answer:- Option-A
Question46:-The LM curve will shift to right when there is an
A:-Increase in the rate of saving
B:-Increase in the investment