Inflation: Problem and Policies - Online Test
Q1. Inflation affects people adversely because:
Answer : Option C
Explaination / Solution:
No Explaination.
Q2. Which of the following does NOT come under the rubric of fiscal policy?
Answer : Option D
Explaination / Solution:
No Explaination.
Q3. Monetary neutrality implies that in the long run:
Answer : Option B
Explaination / Solution:
No Explaination.
Q4. "Too much money chasing too few goods" best describes:
Answer : Option D
Explaination / Solution:
No Explaination.
Q5. Cost-push inflation
Answer : Option D
Explaination / Solution:
No Explaination.
Q6. Wealth is redistributed from creditors to debtors when inflation was
Answer : Option C
Explaination / Solution:
No Explaination.
Q7. In order to maintain stable prices, a central bank must
Answer : Option D
Explaination / Solution:
No Explaination.
Q8. Stagflation occurs when the
Answer : Option D
Explaination / Solution:
No Explaination.
Q9. Rise in supply of money may not lead to an increase in the price level because
Answer : Option A
Explaination / Solution:
No Explaination.
Q10. When inflation rises, people desire to hold
Answer : Option D
Explaination / Solution:
No Explaination.
