Directions (1-10) : Read the following passage carefully and answer the questions given below it. Certain words/phrases are printed in bold to help you locate them while answering some of the questions.
John Maynard Keynes, the trendiest dead economist of this apocalyptic moment, was the godfather of government stimulus. Keynes had the radical idea that throwing money at recessions through aggressive deficit spending would resuscitate flatlined economies and he was not too particular about where the money was thrown. In the depths of the depression, he suggested that the treasury could “fill old bottles With banknotes, bury them at suitable depths in disused coal mines” then sit back and watch a money-mining boom create jobs and prosperity. “It would, indeed, be more sensible to build houses and the like", he wrote, but “the above would be better than nothing.” '
As President-elect Barack Obama prepares to throw money at the current downturn-a stimulus package starting at about $800 billion, plus the second $350 billion chunk of the financial bailout-we all really do seem to be Keynesians now. Just about every expert agrees that pumping $1. trillion into a moribund economy will rev up the ethereal goods and services engine that Keynes called “aggregate demand” and stimulate at least some short term activity, even if it is all wasted on money pits. But Keynes was also right that there would be more sensible ways to spend it. There would also be less sensible ways to spend it. A trillion dollars' worth of bad ideas-sprawl-inducing highways and bridges to nowhere. ethanol plants and pipelines that accelerate global warming, tax breaks for over leveraged McMansion builders and burdensome new long-term federal entitlements would be worse than mere waste. It would be smarter to buy American an iPod, a set of Ginsu knives and 600 Subway foot longs.
It would be smarter still to throw all that money at things we need to do anyway. which is the goal of Obama's upcoming American Recovery and Reinvestment Plan. It will include a mix of tax cuts, aid to beleaguered state and local governments; and spending to address needs ranging from food stamps to computerised health records to bridge repairs to broadband network so energy-efficiency retrofits, all designed to save or create 3 million to 4 million jobs by the end of 2010. Obama has said speed is his top priority because the faster Washington injects cash into the financial bloodstream, the better it stands to help avert a multi-year slump with double-digit unemployment and deflation. But he also wants to use the stimulus to advance his long-term priorities : reducing
energy use and carbon emissions, cutting middle-class taxes, upgrading neglected infrastructure, reining in health care costs and eventually reducing the budget deficits that exploded under George W. Bush. Ohama's goal is to exploit this crisis in the best sense of the word to start pursuing his vision of a greener, Fairer, more competitive, more sustainable economy.
Unfortunately, while 215i century Washington has demonstrated an impressive ability to spend money quickly, it has yet to prove that it can spend money wisely. And the churn of a 1 with 12 zeros is already creating a feeding frenzy for the ages. Lobbyists for shoe companies. zoos, catfish farmers, mall owners, airlines, public broadcasters, car dealers and everyone else who can afford their retainers are lining up for a piece of the stimulus. States that embarked on raucous spending and tax Cutting sprees when they Were flush are begging for bailouts now that they're broke. And politicians are dusting off their unfunded mobster museums. waterslides and other pet projects for rebranding as shovel-ready infrastructure investments. As Obama's aides scramble to assemble something . effective and transformative as Well as politically achievable, they acknowledge the tension between his desires for speed and reform.

Obama desires to accelerate the process of pumping money with utmost rapidity as he believes that it would :

(A) Help create reasonably high employment opportunities

(B) Avoid deflation

(C) Inject cash into the already troubled economy

A) (A) and (B)

B) (B) and (C)

C) (A) and (C)

D) All (A) (B) and (C)

E) None of the above

Correct Answer:
A) (A) and (B)

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1). Which of the following is TRUE about Keynes' philosophy ?
A). Actual spending money during meltdown is more important than where and on What it is spent
B). Government should be selective in approach for spending money during recession
C). Filling old bottles with banknotes and burying them is anatrocious proposal
D). creating jobs and prosperity during recessions is almost an impracticable proposal
E). None of the above
-- View Answer
2). What according to Keynes, is the “aggregate demand" ?
A). Goods and Services Sector
B). Stimulation of a short-term activity
C). Attempting to rev up the sluggish economy
D). Pumping one trillion dollars into economy
E). None of the above
-- View Answer
3). According to the author of the passage, food stamps, bridge repairs, etc. are the projects that :
A). Do not warrant urgent spending as they have a lower utility value
B). Need the least investment and priority as compared to building houses for the needy
C). May not have any favourable impact on attempts to counter recession
D). Have lower value in terms of returns but require major investments
E). None of the above
-- View Answer
4). The author of the passage calls Barack Obama and his team as“Keynesians” because :
A). Barack Obama has been reluctant to follow Keynes' philosophy
B). His team is advising Barack to refrain from Keynes' philosophy
C). Barack Obama and his team have decided to fill old bottles with banknotes
D). Building houses has been under the active consideration of Barack Obama and his team
E). None of the above
-- View Answer
5). Which of the following is most nearly the opposite in meaning to the word 'Raucous' as used in the passage ?
A). Strident
B). Harsh
C). Rough
D). Unprecedented
E). Soft
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6). Which of the following is most nearly the opposite in meaning to the word 'Beleaguered' as used in the passage ?
A). Carefree
B). Harassed
C). Stressful
D). Uneventful
E). Evaporating
-- View Answer
7). Which of the following is most nearly the same in meaning to the word 'Frenzy' as used in the passage ?
A). Passion
B). Expression
C). Succession
D). Habit
E). Manifestation
-- View Answer
8). Some people think that their life is full of grief and miseries too grievous to be born.
A). grief
B). miseries
C). grievous
D). born
E). All correct
-- View Answer
9). The opinion expressed is based only on our transactions with the party concerns.
A). opinion
B). expressed
C). transactions
D). concerns
E). All correct
-- View Answer
10). The great ability to break down extraordinary circumstances into ordinary everydayness was certainly in evidance in great measure.
A). ability
B). circumstances
C). everydayness
D). evidance
E). All correct
-- View Answer