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An increase in the budget deficit will ?

Economics Mcqs, Stocks /
An increase in the budget deficit will ?

A. raise the real interest rate and decrease the quantity of loanable funds demanded for investment
B. lower the real interest rate and increase the quantity of loaable funds demanded for investment
C. raise the real interest rate and increase the quantity of loandable funds demanded for investment
D. lower the real interest rate and decrease the quantity of loanable funds demanded for investment

An increase in the budget deficit will ? Read More »

Economics Mcqs, Stocks

Which of the following sets of government policies is the most growth oriented ?

Economics Mcqs, Stocks /
Which of the following sets of government policies is the most growth oriented ?

A. Lower taxes on the returns to saving, provide investment tax credits and lower the deficit
B. Increase tax on the returns to saving Provide investment tax credits and increase the deficit
C. Increase tax on the returns to saving Provide investment tax credits and lower the deficit
D. Lower taxes on the returns to saving Provide investment tax credits and increase the deficit

Which of the following sets of government policies is the most growth oriented ? Read More »

Economics Mcqs, Stocks

If the public consumes Rs 100 billion less and the government purchases Rs100 billion more (other things unchanging), Which of the following statement is true ?

Economics Mcqs, Stocks /
If the public consumes Rs 100 billion less and the government purchases Rs100 billion more (other things unchanging), Which of the following statement is true ?

A. Saving is unchanged
B. There is an increased in saving and the economy should grow more quickly
C. There is a decrease in saving and the economy should grow more slowly
D. There is not enough information to determine what will happen to saving

If the public consumes Rs 100 billion less and the government purchases Rs100 billion more (other things unchanging), Which of the following statement is true ? Read More »

Economics Mcqs, Stocks

If the government increases investment tax credits and reduces taxes on the return to saving at the same time ?

Economics Mcqs, Stocks /
If the government increases investment tax credits and reduces taxes on the return to saving at the same time ?

A. the real interest rate should fall
B. the real interest rate should rise
C. the impact on the real interest rate is indeterminate
D. the real interest rate should not change

If the government increases investment tax credits and reduces taxes on the return to saving at the same time ? Read More »

Economics Mcqs, Stocks

If the Supply of loanable funds is very inelastic (steep) Which policy would likely increase saving and investment the most ?

Economics Mcqs, Stocks /
If the Supply of loanable funds is very inelastic (steep) Which policy would likely increase saving and investment the most ?

A. a reduction in the budget deficit
B. an increase in the budget deficit
C. an investment tax credit
D. None of the above

If the Supply of loanable funds is very inelastic (steep) Which policy would likely increase saving and investment the most ? Read More »

Economics Mcqs, Stocks

An increase in the budget deficit that causes the government to increase its borrowing ?

Economics Mcqs, Stocks /
An increase in the budget deficit that causes the government to increase its borrowing ?

A. Shifts the supply of loanable funds to the right
B. Shift the demand for loandbale funds to the left
C. Shift the demand for loanable funds to the right
D. Shift the supply of loanable funds to the left

An increase in the budget deficit that causes the government to increase its borrowing ? Read More »

Economics Mcqs, Stocks