ECO341 NOUN TMA Past Questions & Answers


1. Question: Withdrawal variables are all except
Answer: export

2. Question: The functions of money are affected by inflation except
Answer: store of value

3. Question: If C = a + bYd, what is "b"?
Answer: the slope of the function

4. Question: Q4 If Y = C + S, and given that C = 25 + 0.75Yd, derive a savings function (S)
Answer: -25 + 0.25Yd

5. Question: A consumption that is dependent on the entire income of Man in his lifetime is known as
Answer: Life circle hypothesis

6. Question: In the IS-LM framework, on the vertical side is the
Answer: interest rate

7. Question: In the IS-LM framework, The LM curve is
Answer: increasing

8. Question: Which is not true about marginal efficiency of investment (MEI)
Answer: MEI is the supply curve of investment

9. Question: When reduction in profits force organizations to reduce investment projects is called
Answer: Liquidity version

10. Question: A change in a households consumption pattern that leads to a in national income is known as
Answer: multiplier


11. Question: In any economy where aggregate supply (AS) is less than aggregate demand (AD), such is
Answer: inflationary

12. Question: N20, 000 worthies of the money order is
Answer: near money

3. Question: With your understanding of the quantity theory of money, assuming there is a 20% drop in 'M' all things being equal, interpret its effect on 'P'
Answer: 20% fall in P

14. Question: In the quantity theory of money model where MV = PQ, 'P' is
Answer: average price level

15. Question: A situation where some Nigerians keep money at home, instead of interest generating assets is a case of
Answer: Demand for money

16. Question: The money in with commercial banks and the currency in circulation is known as
Answer: High powered money

17. Question: A imbalanced exchange rate and unbalanced balance of payment mean
Answer: External disequilibrium

18. Question: When aggregate demand (AD) equates to potential output, the economy is said to be
Answer: Internally balance

19. Question: The notion of INFERIOR and SUPERIOR are synonymous with
Answer: Dualistic model

20. Question: Nigeria as a nation that wants to be classed as a developed country must pursue
Answer: Price stability