Question 1

In which of the following sequences does the change in quantity of money lead to change in price level in the Keynesian model?
Change in quantity of money - change in rate of interest - change in investment - change in employment and output - change in price level

Question 2

Deficit financing means
public expenditure in excess of public revenue

Question 3

The term 'crowding out effect' refers to
reduction in private investment due to increased government borrowing

Question 4

The term 'fiscal deficit' refers to
government borrowing requirement

Question 5

The World Bank provides loans mainly for
poverty reduction and development projects