Question : A sudden decrease in the birth rate would cause _______.

Option 1: increase in per capita income

Option 2: increase in investment

Option 3: increase in savings

Option 4: increase in loan requests

Question : Which of these statements is true?

Option 1: At lower rates of interest, people will have a lower preference for liquidity.

Option 2: At higher rates of interest transactions, demand for money will be higher.

Option 3: At lower rates of interest, speculative demand for money will be higher.

Option 4: At higher rates of interest, the liquidity preference of people will increase.

Question : Government borrowing to finance budget deficits ____________.

Option 1: will exert downward pressure on interest rates

Option 2: will not affect interest rates

Option 3: will increase the supply of loanable funds

Option 4: will put upward pressure on interest rates

Question : The Monetary Policy Committee maintained a hawkish stance on the interest rates. In this context, the 'hawkish stance' means_____.

Option 1: interest rates were decreased

Option 2: interest rates were increased

Option 3: interest rates were kept unchanged

Option 4: money supply was increased

Question : What is the change in fiscal deficit if both the primary deficit and interest payments are doubled?

Option 1: Increase by 100%

Option 2: Increase by 200%

Option 3: Decrease by 50%

Option 4: Decrease by 100%