The concept of 'Multiplier-Accelerator Interaction' is associated with: MCQ with Answer and Explanation

The concept of 'Multiplier-Accelerator Interaction' is associated with:
A. Public finance theories
B. Monetary theories
C. Business cycle theories
D. International trade theories
Answer: Option C
Solution (By JKSSB Mock Tests)
The interaction between the multiplier and accelerator is used in theories of business cycles (e.g., by Samuelson and Hicks) to explain fluctuations in economic activity.

Discuss this Question (0)

No comments yet. Be the first to start the discussion!

Practice More Economy Set 1 Questions

Question #1
The 'Pradhan Mantri Fasal Bima Yojana' provides crop insurance at what premium rate for Kharif crops?
A. 1.5% of sum insured
B. 5% of sum insured
C. 2% of sum insured
D. 10% of sum insured

Correct Answer: Option C


Explanation:
PMFBY premium for Kharif crops is 2% of sum insured, Rabi 1.5%, commercial/horticultural 5%.

This question belongs to: Economy GK Economy Set 1
Question #2
The 'Reserve Bank of India' was established on:
A. 1 April 1935
B. 1 January 1935
C. 1 April 1934
D. 1 July 1934

Correct Answer: Option A


Explanation:
The RBI was established on 1 April 1935.

This question belongs to: Economy GK Economy Set 1
Question #3
The 'Goods and Services Tax' on healthcare and education being exempt is intended to:
A. make essential services affordable
B. increase government revenue
C. increase tax burden
D. promote imports

Correct Answer: Option A


Explanation:
Exempting essential services like health and education makes them affordable.

This question belongs to: Economy GK Economy Set 1