Open Economy Macroeconomics CBSE Questions & Answers

Open Economy Macroeconomics

This is Economics Class 12 Open Economy Macroeconomics CBSE Questions & Answers. There are 15 questions in this test with each question having around four answer choices.

Questions & Answers

1
The demand curve for foreign exchange is
  • A
    Horizontal
  • B
    Downward sloping
    Correct
  • C
    Upward sloping
  • D
    Vertical
2
The supply of foreign exchange and the exchange rate has
  • A
    Indirect relationship
  • B
    Exponential relationship
  • C
    Direct relationship
    Correct
  • D
    Inverse relationship
3
The supply curve of foreign exchange is
  • A
    Horizontal
  • B
    Vertical
  • C
    Upward sloping
    Correct
  • D
    Downward sloping
4
The equilibrium exchange rate is determined at the point where the
  • A
    None of the above
  • B
    Demand for and Supply of foreign exchange has maximum gap
  • C
    Demand for and Supply of foreign exchange has maximum gap
  • D
    Demand for and Supply of foreign exchange is equal
    Correct
5
The upward sloping supply curve for the foreign exchange reflects
  • A
    Direct relationship
    Correct
  • B
    Inverse relationship
  • C
    Indirect relationship
  • D
    Exponential relationship
6
The downward sloping demand curve for the foreign exchange reflects
  • A
    Direct relationship
  • B
    Exponential relationship
  • C
    Inverse relationship
    Correct
  • D
    Indirect relationship
7
If the demand for foreign exchange rises, supply schedule remaining the same, the exchange rate will rise. It is
  • A
    Sometimes
  • B
    Always
    Correct
  • C
    Never
  • D
    Can’t say
8
If the Supply of foreign exchange rises, demand schedule remaining the same, the exchange rate will rise. It is
  • A
    Can’t say
  • B
    Always
  • C
    Sometimes
  • D
    Never
    Correct
9
If c = 0.8 and m = 0.3, the open economy multiplier will be
  • A
    5.0
    Correct
  • B
    8
  • C
    6
  • D
    7
10
If c = 0.8 and m = 0.3, the closed economy multiplier will be
  • A
    4
  • B
    5
  • C
    2.0
    Correct
  • D
    3
11
If domestic autonomous demand increases by 100, in a closed economy output will increase by
  • A
    800
  • B
    500.0
    Correct
  • C
    700
  • D
    600
12
If domestic autonomous demand increases by 100, in a open economy output will increase by
  • A
    400
  • B
    300
  • C
    500
  • D
    200.0
    Correct
13
The balance of payment is a more comprehensive than balance of trade concept. It is
  • A
    Always
    Correct
  • B
    Sometimes
  • C
    Can’t say
  • D
    Never
14
Balance of invisibles is the
  • A
    None of the above
  • B
    Value of invisibles exported less value of invisibles imported
    Correct
  • C
    Value of invisibles exported less value of visibles imported
  • D
    Value of visibles exported less value of invisibles imported
15
Balance of visibles is the
  • A
    Value of visibles exported less value of visibles imported
    Correct
  • B
    Value of invisibles exported less value of visibles imported
  • C
    None of the above
  • D
    Value of visibles exported less value of invisibles imported