Economics Questions and Answers
Economics questions and answers to help you prepare for JAMB, WAEC, NECO, Post UTME and job aptitude tests or interviews.
Economics questions and answers to help you prepare for JAMB, WAEC, NECO, Post UTME and job aptitude tests or interviews.
Restrictive monetary policy is designed to curtail aggregate demand and to overcome________
Deflation
Reinflation
Disinflation
Inflationary gap
Correct answer is D
Restrictive monetary policy which is also known as contractionary monetary policy is used to increase interest rate and reduce investment so as to control inflation in an economy.
Monetary policy
Fiscal policy
Credit ceiling
Open market operation
Correct answer is C
Credit ceiling is one of the tools or instrument of monetary policy used by central bank to control credit in an economy.
Stagflation
Inflationary spiral
Slump inflation
Inflationary gap
Correct answer is C
An economic which idleness and under utilization of resources such as capital and labour is known as Slump Inflation.
The money market equilibrium is defined as________
When the demand and supply of money are equal
When demand is greater than supply of money
When demand is less than supply of money
When supply is greater than demand for money
Correct answer is A
The money market is in equilibrium when the demand & supply of money are equal i.e L = μ
where L = money demand, μ = money supply
Thus μ = LT(γ) + Ls(r)
Deductive reasoning
Inductive reasoning
Normative reasoning
Positive reasoning
Correct answer is A
The deductive reasoning method involves following one or more factual statements that have been established to arrive at a conclusion. Deductive reasoning aims at testing an existing theory.
From the question above, there are existing data from which logical conclusions will be drawn and this makes it deductive reasoning.
While inductive reasoning aims at developing a theory, deductive reasoning aims at testing an existing theory.