Subject - Economics:

Macroeconomics

MCQ - 34-4044

Question:

Which of the following statements is true?

The velocity of money is equal to real GDP divided by the money supply.
Dollars earned today have more purchasing power than dollars earned a year from today.
The supply of loanable funds consists of investors.
Dollars earned today have more purchasing power than dollars earned a year from today.
Expansionary fiscal policy shifts the money supply curve to the right, lowering interest rates.

Correct Answer: A

Explanation:

Choice (A) is incorrect because the equation of exchange defines the velocity of money as nominal GDP divided by money supply. The supply of loanable funds includes savers, not investors. Fiscal policy shifts the AD curve, not the money supply curve.

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269 MCQ for effective preparation of the test of Macroeconomics of Economics section.

Read the MCQ statement: Which of the following statements is true? , keenly and apply the method you have learn through the video lessons for Macroeconomics to give the answer. Record your answer and check its correct answer and video explanation for MCQ No. 34-4044.

How to Answer

Solve the question for MCQ No. and decide which option (A through D/E) is the best choice to answer the MCQ, then click/tap the blue button to view the correct answer and it explanation.

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