If the economy is in the expansionary phase of the business cycle, aggregate demand ____ unemployment ____ inflation ____ payments is likely to move towards ____?

A. Falls; rise; falls; surplus
B. Is static; low; rise; deficit;
C. Falls; falls; falls; surplus
D. Rise; falls; rises; deficit

If the economy is in the recessionary phase of the business cycle, aggregate demand ___ unemployment ____ inflation ___ and the current account of the balance of payments is likely to move towards ____?

A. Falls; falls; falls; surplus
B. Is static; low; rises; deficit
C. Falls; rises; falls; surplus
D. Rises; falls; rises; deficit

If British residents want more French francs to purchase more French cloths other things equal, then the equilibrium value of the pound against the French franc will ?

A. Rise
B. Fall
C. Not change
D. Fluctuate

A current account deficit means that a country may ?

A. Reduce its stock of foreign assets
B. Increase its stock of foreign assets
C. Increases its savings
D. Increases its foreign currency reserves

If a nation’s interest rates are relatively low compared to those of other countries. then the exchange value of its currency will tend to ?

A. Not be affected
B. Appreciate
C. Depreciate
D. Fluctuate more than if interest rates were high

If the Pakistan receives larger than expected revenues from exports then the exchange value of its currency will tend to ?

A. Not be affected
B. Fluctuate more than if exports were lower
C. Depreciate
D. Appreciate

The record of country’s imports and exports of goods is called its ?

A. Balance of trade:
B. Balance of payments
C. Balance of payments on current account
D. Visible trade balance

The record of a country’s imports and exports of of goods and services plus net investment incomes and current transfers of money to and from abroad, is called its ?

A. Balance of payments on current account
B. Visible trade balance
C. Balance of trade
D. Balance of payments

The record of country’s transfers of land inter-government payments and money sent by migrants to and from abroad is called its ?

A. Balance of payments
B. Capital account of the balance of payments
C. Financial account of the balance of payments
D. Balance of payments on current account

Government policies that focus on increasing production rather than demand are called ?

A. Fiscal policies
B. Monetary policies
C. Supply-side policies
IncOmes policies