76. The term “human development index” (HDI) measures:
a) The level of economic inequality in a country
b) The level of education and health indicators in a country
c) The level of industrialization and technological advancements in a country
d) The level of political stability and governance in a country
77. The term “bank rate” refers to:
a) The rate at which commercial banks lend to the central bank
b) The rate at which the central bank lends to commercial banks
c) The rate at which the central bank lends to the government
d) The rate at which commercial banks lend to each other
78. The term “fiscal multiplier” refers to:
a) The ratio of government spending to GDP
b) The ratio of government revenue to GDP
c) The ratio of government debt to GDP
d) The ratio of government spending to the change in GDP
79. The term “crowding out” refers to:
a) The decrease in private investment due to government borrowing
b) The decrease in government expenditure due to public protests
c) The decrease in consumer spending due to high inflation
d) The decrease in exports due to a strong domestic currency
80. The term “liquidity trap” refers to a situation where:
a) Interest rates are so high that investment becomes unattractive
b) Interest rates are so low that monetary policy becomes ineffective
c) Fiscal policy is ineffective in stimulating the economy
d) Inflation is so high that it erodes the value of money
