The 'Fisher effect' suggests that if expected inflation rises by 1%, nominal interest rates: MCQ with Answer and Explanation

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The 'Fisher effect' suggests that if expected inflation rises by 1%, nominal interest rates:

A. fall by 1%

B. rise by about 1%

C. remain unchanged

D. fall by more than 1%

Answer: Option B

Solution (By JKSSB Mock Tests)

The Fisher effect indicates nominal interest rates rise with expected inflation one-for-one in the long run.

This question belongs to: Economy GK Economy Set 1

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The 'National Curriculum Framework for Foundational Stage' was introduced as part of:

A. Make in India

B. National Education Policy 2020

C. Skill India

D. Digital India

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Correct Answer: Option B

Explanation:
NCF-FS is part of the implementation of NEP 2020.

This question belongs to: Economy GK Economy Set 1

Question #2

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The 'Paramparagat Krishi Vikas Yojana' promotes:

A. chemical farming

B. organic farming

C. GM crops

D. hydroponics only

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Correct Answer: Option B

Explanation:
PKVY promotes organic farming through cluster-based approach.

This question belongs to: Economy GK Economy Set 1

Question #3

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In the context of inflation measurement, the GDP deflator is:

A. The ratio of nominal GDP to real GDP

B. A measure of wholesale prices only

C. A fixed-basket consumer price index

D. A measure of consumer price changes only

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Correct Answer: Option A

Explanation:
The GDP deflator is calculated as (Nominal GDP / Real GDP) × 100 and reflects price changes of all goods and services produced domestically.

This question belongs to: Economy GK Economy Set 1

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