Economics Mcqs

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

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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

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 ?

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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 Pakistani citizens become more thrifty we would expect ?

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If Pakistani citizens become more thrifty we would expect ?

A. The supply of loanable funds in the Pakistan loanable funds market to shift to the right and the real interest rate to fall.
B. The demand for loanable funds in the Pakistan loanable funds market to shift to the right and the real interest rate to rise
C. The demand for loandable funds in the Pakistan loanable funds market to shift to the right and the real interest rate to fall
D. The supply of loandable funds in the Pakistan loanable funds market to shift to the right and the real interest rate to rise