A. increase the interest rate
B. increase the price level
C. decrease the price level
D. decrease the interest rate
The initial effect of an increase in the money supply is to ? Read More »
Economics Mcqs, Macroeconomic Policy Tools A. The wealth effect
B. None of these answers
C. The exchange-rate effect
D. The fiscal effect
E. The interest-rate effect
A. None of these answers
B. decrease the quantity demanded of money
C. increase the quantity demanded of money
D. decreases the demand for money
E. increases the demand for money
A. The money supply shifts right prices fall spending increases and the aggregate demand curve shifts right
B. The money supply shifts right the interest rate rises investment decreases and the aggregate demand curve shifts left
C. The money supply shifts right the interest rate falls, investment increases, and the aggregate demand curve shifts right
D. The money supply shifts right, prices rise, demand curve shifts left
A. Many economists prefer automatic stabilizers because they affect the economy with a shorter lag than activist stabilization policy
B. None of these answers are true
C. Long lags enhance the ability of policy makers to fine tune the economy
D. When policy makers implement activist stabilization policies there is a significant risk that their policies may actually have a destabilizing effect
Which of the following statements about stabilization policy is not true ? Read More »
Economics Mcqs, Macroeconomic Policy Tools A. The multiplier effects
B. supply side economics
C. None of these answers
D. The crowding out effect
A. Most economists believe that in the short run the greatest impact of a change in taxes is on aggregate supply, not aggregate demand
B. An increase in taxes shifts the aggregate demand curve to the right
C. A decrease in taxes shifts the aggregate supply curve to the left
D. A permanent change in taxes has a greater effect on aggregate demand than a temporary change in taxes.
Which of the following statements regarding taxes is correct ? Read More »
Economics Mcqs, Macroeconomic Policy Tools A. decrease government spending Which the shifts the aggregate demand curve to the left
B. decrease taxes, which shifts the aggregate demand curve to the right
C. decrease taxes, which shifts the aggregate demand curve to the left
D. decrease government spending which shifts the aggregate demand curve to the right
A. 4
B. 7.5
C. 5
D. 0.75
If the marginal propensity of consume MPC is 0.75 the value of the multiplier is ? Read More »
Economics Mcqs, Macroeconomic Policy Tools A. Increase government spending and decrease taxes
B. decrease the money supply
C. decrease government spending and increase taxes
D. decrease interest rates
