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Economics Mcqs

If the state Bank of Pakistan wished to pursue an expansionary monetary policy it would ?

If the state Bank of Pakistan wished to pursue an expansionary monetary policy it would ?

A. increase the minimum reserve asset ratio.
B. buy government securities on the open market
C. raise interest rates
D. sell government securities on the open market

If the state Bank of Pakistan wished to pursue an expansionary monetary policy it would ? Read More »

Economics Mcqs, Fiscal And Monetary Policy

The idea that the money supply should change to accommodate changes in aggregate demand is associated with the idea of ?

The idea that the money supply should change to accommodate changes in aggregate demand is associated with the idea of ?

A. Margaret Thatcher
B. Ronald Reagan
C. Milton Friedman
D. John Maynard Keynes

The idea that the money supply should change to accommodate changes in aggregate demand is associated with the idea of ? Read More »

Economics Mcqs, Fiscal And Monetary Policy

The response lag of stabilization policy represents ?

The response lag of stabilization policy represents ?

A. the time that it takes for policy makers to recognize the existence of boom of bust
B. the time needed for parliament to agree to a tax cut.
C. the time that is necessary to put the desired policy into effect
D. the time that it takes for the economy to adjust to the new conditions after a new policy has been implemented

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Economics Mcqs, Fiscal And Monetary Policy

Time lags which often erode effectiveness of monetary and fiscal policy measures represent ?

Time lags which often erode effectiveness of monetary and fiscal policy measures represent ?

A. delays in the response of the economy is stabilization policy
B. the foreign response to price changes
C. the change in exports and imports prices
D. the change in exchange rates

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Economics Mcqs, Fiscal And Monetary Policy

The negative effect on the economy that occurs when average tax rates increase because taxpayers have moved into higher income brackets during an expansion is ?

The negative effect on the economy that occurs when average tax rates increase because taxpayers have moved into higher income brackets during an expansion is ?

A. debt burden
B. the Laffer curves
C. bracket creep
D. fiscal drag

The negative effect on the economy that occurs when average tax rates increase because taxpayers have moved into higher income brackets during an expansion is ? Read More »

Economics Mcqs, Fiscal And Monetary Policy

Automatic stabilisers act to ____ government expenditures and ____ government revenues during recessions ?

Automatic stabilisers act to ____ government expenditures and ____ government revenues during recessions ?

A. increase: increase
B. decrease; decrease
C. increase; decrease
D. decrease; increase

Automatic stabilisers act to ____ government expenditures and ____ government revenues during recessions ? Read More »

Economics Mcqs, Fiscal And Monetary Policy

Under a system of floating exchange rates there is a general tendency for ?

Under a system of floating exchange rates there is a general tendency for ?

A. exchange rates to be insensitive to the differential rates of inflation between countries
B. the currencies of relatively high-inflation countries to depreciate
C. the currencies of relatively high inflation countries to appreciate
D. the currencies of relatively low inflation countries to depreciate

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Economics Mcqs, Foreign Exchange