In the IS-LM model, what does the IS curve represent?

The relationship between real money supply and interest rates.

The relationship between consumption and income.

The relationship between investment and interest rates.

The relationship between government expenditure and taxes.

In the IS-LM model, what is the primary role of the LM curve?

To show the relationship between investment and interest rates.

To show the relationship between consumption and income.

To show the relationship between money demand and money supply.

To show the relationship between government expenditure and taxes.

What is an autonomous change in investment spending?

A change in investment spending that depends on the interest rate.

A change in investment spending that is unrelated to the interest rate.

A change in investment spending caused by changes in consumption.

A change in investment spending caused by changes in government expenditure.

What factor can cause a shift in the LM curve in the IS-LM model?

Changes in government expenditure.

What determines the steepness of the IS curve?

The size of the multiplier and government spending.

The elasticity of the investment demand curve and the size of the multiplier.

Only the size of the multiplier.

Only the elasticity of the investment demand curve.

In the IS-LM model, what does the equilibrium point on the IS curve represent?

The point where aggregate supply equals aggregate demand.

The point where investment equals consumption.

The point where net exports equal government expenditure.

The point where real money supply equals real money demand.

Why is fiscal policy effective when the economy is in a liquidity trap?

Because it reduces the money supply, leading to higher interest rates.

Because it increases the money supply, leading to lower interest rates.

Because it increases investment demand, even when interest rates are at zero.

Because it decreases investment demand, even when interest rates are at zero.

What determines the position of the IS curve in the IS-LM model?

The level of autonomous expenditure.

The level of real money supply.

What happens to the IS curve when there is an autonomous increase in net exports?

The IS curve shifts to the left.

The IS curve shifts to the right.

Macro Economic Framework- 2 Free MCQ Practice Test with Solutions

	Macro Economics 59 videos\|61 docs\|29 tests

	Macro Economics 59 videos\|61 docs\|29 tests

Important Questions for Macro Economic Framework- 2

Find all the important questions for Macro Economic Framework- 2 at EduRev.Get fully prepared for Macro Economic Framework- 2 with EduRev's comprehensive question bank and test resources. Our platform offers a diverse range of question papers covering various topics within the Macro Economic Framework- 2 syllabus. Whether you need to review specific subjects or assess your overall readiness, EduRev has you covered. The questions are designed to challenge you and help you gain confidence in tackling the actual exam. Maximize your chances of success by utilizing EduRev's extensive collection of Macro Economic Framework- 2 resources.

Macro Economic Framework- 2 MCQs with Answers

Prepare for the Macro Economic Framework- 2 within the B Com exam with comprehensive MCQs and answers at EduRev. Our platform offers a wide range of practice papers, question papers, and mock tests to familiarize you with the exam pattern and syllabus. Access the best books, study materials, and notes curated by toppers to enhance your preparation. Stay updated with the exam date and receive expert preparation tips and paper analysis. Visit EduRev's official website today and access a wealth of videos and coaching resources to excel in your exam.

Online Tests for Macro Economic Framework- 2 Macro Economics

Practice with a wide array of question papers that follow the exam pattern and syllabus. Our platform offers a user-friendly interface, allowing you to track your progress and identify areas for improvement. Access detailed solutions and explanations for each test to enhance your understanding of concepts. With EduRev's Online Tests, you can build confidence, boost your performance, and ace Macro Economic Framework- 2 with ease. Join thousands of successful students who have benefited from our trusted online resources.

Education Revolution