If the exchange rate between the UK and Japan changes from £1 = 100 yen to £1 = 150 yen then ceteris paribus, the price of UK goods in Japan ?

A. Will remain the same
B. Will decrease
C. Will increase
D. Could either increase of decrease

If the Pakistan takes part in a war in the Middle East, then the exchange value of its currency will tend to ?

A. Depreciate
B. Not be affected
C. Fluctuate more than if it were at peace
D. Appreciate

If Pakistan’s incomes rise faster than those in most other countries the the exchange value will tend to ?

A. Fluctuate more than it would do otherwise
B. Appreciate
C. Depreciate
D. Not be affected

If a large car importer in the Pakistan wants to import many cars, then the exchange value of the Pak rupees will tend to ?

A. Fluctuate more than it would do otherwise
B. Appreciate
C. Depreciate
D. Not be affected

If the economy is at the peak of the business cycle, aggregate demand ____ unemployment _______ inflation _______ and the current account of the balance of payments is likely to move towards _______?

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

If the economy is in the though 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. Falls; rises; falls; surplus
C. Is static; low; rises; deficit
D. Rises; falls; rises; deficit

The natural rate of unemployment is generally thought of as the ?

A. Ratio of the frictional unemployment rate to the cyclical unemployment rate.
B. Sum of structural unemployment and cyclical unemployment.
C. Sum of frictional unemployment and cyclical unemployment
D. Sum of frictional unemployment and structural unemployment.

As prices rise, there will be costs of constantly changing price-tags and reprinting price-lists This is called ?

A. Real balance effect
B. Menu costs of inflation
C. Money illusion.
D. Cost-push inflation.

Government policies that focus on changing taxes and government spending are called ?

A. Fiscal policies
B. Incomes policies
C. Supply-side policies
D. Monetary policies

If interest rates rise then costs are likely to _______ and demand is likely to _________?

A. Rise, fall
B. Rise; rise
C. Fall; fall
D. Fall; rise