Question : The maximum value of multiplier is _.
 

Option 1: Infinity 
 

Option 2: Zero
 

Option 3: One
 

Option 4: None of the above.
 

Question : When income level is zero, the consumption is ___________.
 

Option 1: Positive
 

Option 2: Negative
 

Option 3: Zero 
 

Option 4: None of the above.
 

Question : Which of the following statement are true?

1. The minimum value of multiplier can be zero and the maximum value of multiplier can be infinity.
2. Multiplier is a forward-looking function. Increase in income by a number of times due to a single increase in investment.

Option 1: Both are true.
 

Option 2: Both are false.
 

Option 3: Statement 1 is true, statement 2 is false.
 

Option 4: Statement 1 is false, statement 2 is true.
 

Question : _________________ indicates that interest commitments have forced the government to borrow.
 

Option 1: Low/zero primary deficit
 

Option 2: Low/zero fiscal deficit 
 

Option 3: Low/zero revenue deficit
 

Option 4: None of the above.
 

Question : When value of domestic currency is tied to the value of another currency, it is known as 
 

Option 1: Pegging
 

Option 2: Parity value
 

Option 3: Speculative
 

Option 4: None of the above.