Economics Readings Site By Colin Ong

This blog has been created to provide an area for economics students to read about how economics impacts daily life. It is especially useful for students to understand the application of macroeconomics as communicated through the media and governmental websites.

This online resource has been set up for educational purposes.All rights are reserved by the various websites.

For further clarification, please email colin@mrmc.com.sg

MCQ 2 (b,a)

clipped from www.bized.co.uk

Inflation




Q1. Other things constant, if the anticipated rate of inflation rises, we would expect the nominal interest rate to


(Select one answer)





(a) * remain unchanged

(b) * rise by the same amount as the increase in the anticipated rate of inflation

(c) * fall by the same amount as the increase in the anticipated rate of inflation

(d) * rise, but by less than the anticipated increase in the rate of inflation









Source: McGraw Hill logo




Q2. Real GDP is gross domestic product measured


(Select one answer)





(a) * in the prices of a base year.

(b) * in current dollars.

(c) * at a constant output level but at current prices.

(d) * as the difference between the current year's GDP and last year's GDP
 blog it