Fiscal And Monetary Policy

A. GDP decrease rapidly
B. GDP remains unchanged
C. GDP decrease slightly
D. GDP increase

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

A. taxes paid by firms and households to the government minus the cost of collecting the taxes
B. Taxes paid firms and households to the government minus the transfer payments made to firms and household
C. Taxes paid by firms and households to the government plus transfer payments made to firm and households
D. government expenditures minus government revenues

A. The government’s budget position should automatically improve
B. The government’s budget position should automatically worsen
C. This will have no effect on the government’s budget position
D. This will reduce the government’s tax revenue

A. A measure of the country’s trade position
B. A measure of the country’s budget position
C. A measure of the country’s total debt
D. A measure of the government’s monetary stance

A. The total tax paid / total income
B. Total income / total tax paid
C. Change in the tax paid / change in income
D. Change in income / change in tax paid

A. Rs 50000
B. 20%
C. 25%
D. Rs 10000

A. Tax bands do not increase with inflation
B. Tax rates move inversely with inflation
C. Government spending falls to reduce aggregate demand
D. Tax banks increase with inflation

A. making banks keep a certain % of their assets as M0
B. controlling the money multiplier
C. restricting the amount of cash in circulation
D. not allowing commercial banks to issue notes and coins

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