The Real Effective Exchange Rate differs from NEER because REER: MCQ with Answer and Explanation

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The Real Effective Exchange Rate differs from NEER because REER:

A. ignores inflation

B. is always higher

C. adjusts for relative price or inflation differences

D. includes only the US dollar

Answer: Option C

Solution (By JKSSB Mock Tests)

REER is NEER adjusted for relative inflation differences.

This question belongs to: Economy GK Economy Set 1

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Question #1

The 'Net National Product at factor cost' equals GNP at factor cost minus:

A. net factor income from abroad

B. indirect taxes

C. subsidies

D. depreciation

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Correct Answer: Option D

Explanation:
NNP at factor cost = GNP at factor cost - depreciation.

This question belongs to: Economy GK Economy Set 1

Question #2

An expansionary fiscal policy consists of:

A. reducing money supply

B. reducing taxes or increasing government expenditure

C. increasing taxes and reducing government expenditure

D. raising the repo rate

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Correct Answer: Option B

Explanation:
Expansionary fiscal policy increases aggregate demand through lower taxes or higher government expenditure.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'National Manufacturing Policy' was released in which year?

A. 2017

B. 2011

C. 2005

D. 2014

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Correct Answer: Option B

Explanation:
The National Manufacturing Policy was released in 2011.

This question belongs to: Economy GK Economy Set 1

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