A government might use tax to ?
A government might use tax to ? A. Discourage consumption of positive externalities B. Discourage consumption of public goodsC. Discourage consumption of merit goods D. Discourage consumption of negative externalities
Fiscal And Monetary Policy
In a regressive tax system ?
In a regressive tax system ? A. The amount of tax paid increase with income B. The marginal rate of tax decrease with more incomeC. The average rate of tax falls as income increase D. The average rate of tax…
If the economy grows the government’s budget position will automatically ?
If the economy grows the government’s budget position will automatically ? A. worsen B. Improve C. Stay the same D. Increase with inflation
If the marginal rate of tax is 40% and consumers income increase from Rs10,000 to Rs12,000 ?
If the marginal rate of tax is 40% and consumers income increase from Rs10,000 to Rs12,000 ? A. The amount of tax paid will increase by Rs4,800 B. The amount of tax paid will increase by Rs4,000 C. The amount…
A reflationary (expansionist) fiscal policy could include ?
A reflationary (expansionist) fiscal policy could include ? A. Lower interest ratesB. Increased lending by the banks C. An increase in corporation tax D. An increase in discretionary government spending
Over-funding is when the State Bank of Pakistan ?
Over-funding is when the State Bank of Pakistan ? A. sells less government bonds than are required to finance the PSBRB. sells more government bonds than are required to finance the PSBR C. sells government securities on the open market…
If the State Bank of Pakistan wished to pursue a tight monetary policy it would ?
If the State Bank of Pakistan wished to pursue a tight monetary policy it would ? A. reduce the minimum reserve asset ratio.B. buy government securities on the open market C. lower interest rates D. sell government securities on the…
Goodhart’s Law suggests that ?
Goodhart’s Law suggests that ? A. bad money drives out good B. monetary policy can only be effective if it is a long-term policyC. controlling one part of the money supply will merely result in that item becoming less important…
The parable of Riding a Switchback suggest that stabilizing policy ?
The parable of Riding a Switchback suggest that stabilizing policy ? A. is not sufficiently stimulating or contracting the economy at any time B. is effectiveC. is stimulating or contracting the economy at the wrong times D. is desirable
The implementation lag for monetary policy is generally ?
The implementation lag for monetary policy is generally ? A. the same as it is for fiscal policyB. much shorter than it is for fiscal policy C. mush longer than it is for fiscal policy D. unrelated to central bank…