Sunday, July 17, 2011

[ vuZs.net ] MGT411 please confirm

In which of the following condition(s) the inflation tends to rise or fall?
       ► When current output is greater than potential output
       ► When current output is less than potential output
       ► When there is an output gap
       ► All of the given options
 Currency to deposit ratio & the quantity of money are ___________.
       ► Negatively related
       ► Positively related
       ► Not related
       ► Incomplete information
The interest rate used in the present value calculation is often referred as:
       ► Discount rate(correct)
       ► Inflation rate
       ► Nominal rate
       ► Deflation rate
Given the quantity of money and the price level, what impact on aggregate demand, if any, should result from an increase in the velocity of money?
       ► It should decrease
       ► It should increase
       ► It should remain constant since the quantity of money is constant
       ► Aggregate demand is not influenced by the velocity of money

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