Correct Answer:-Question Cancelled
Question22:-Friedman’s permanent income hypothesis deals with
AcTheory of Steady Consumption
B:-Individuals consume a constant fraction of their expected income

Ce-The annual average income that people expect to receive over a period
of years in the future

D-All of the above
Correct Answer:- Option-D
Question23:-Intertemporal substitution occurs when
‘Ac Worker's work more in periods of high real wages

B:-Workers reallocate the amount of working time in response to changes
inthe real wage

C:-Workers take more leisure in bad times, when the real wage is low
D-All of the above
Correct Answer:- Option-D
Question24:-In the liquidity trap situation, the speculative money demand function is
‘Ac Unitary elastic
B:-Perfectly inelastic
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D-None of these
Correct Answer:- Option-C
Question25:-High powered money consist of
‘Ac Currency held by the public
B:-Reserves of the commercial banks
೦-884 deposits with RBI
D-All of the above
Correct Answer:- Option-D
Question26:-Money multiplier is the

A:-Ratio of the stock of money supply to the stack of high powered
money in an economy

B-Cu+ DD
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~
090
D:-All of the above
Correct Answer: Option-D
‘Question27:-The deliberate action of the government to stabilize the economy is often referred to as
Ac-Discretionary fiscal policy
B:-Discretionary monetary policy
C-Automatic stabilizers
D:-None of these
Correct Answer: Option:
‘Question28:-Taxation and borrowing are equivalent means of financing expenditure is called
AcBOP equilibrium
B:-Balanced budget
C-Ricardian equivalence
D:-Automatic stabilizers
Correct Answer: Option-C
‘Question29:-An increase in the price level
AcIncreases the real money supply and shifts the LM schedule rightward

B:-Reduces real money supply and shift the LM schedule rightward