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

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

‎०-५॥ 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
०-५॥ of the above
Correct Answer:- Option-D
Question24:-In the liquidity trap situation, the speculative money demand function is
‘AcUnitary elastic
B:-Perfectly inelastic
யய estic
D-None of these
Correct Answer: Option-C
Question25:-High powered money consist of
‘AcCurrency held by the public
नि of the commercial banks
೦-884 deposits with RBI
०-५॥ of the above
Correct Answer:- Option-D
Question26:-Money multiplier is the

‎Ac-Ratio of the stock of money supply to the stock of high powered
money in an economy

‎B-Cu+ DD
ಹ್‌
Cl tedr
"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
A:-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
۸۰.80۴ 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