For given government spending and taxation the government budget deficit will grow in _________ and decline in __________?

Related Mcqs:

1. Estimated income and plane for expenditure is called Budget. What is Budget deficit ?

   A. Less Public spending than amount of revenue corporation
   B. Balance between public spending and amount of revenue
   C. More public spending than amount of revenue
   D. None of them

2. Which approach predicts that is an economy operates a full employment and faces trade deficit currency devaluation will improve the trade balance only if domestic spending is cut thus freeing resources to produce exports ?

   A. the absorption approaches
   B. the Marshall Lerner approach
   C. the monetary approach
   D. the elasticities approach

3. An increase in the budget deficit that causes the government to increase its borrowing ?

   A. Shifts the supply of loanable funds to the right
   B. Shift the demand for loandbale funds to the left
   C. Shift the demand for loanable funds to the right
   D. Shift the supply of loanable funds to the left

4. A significant increase in the government budget deficit is likely to ?

   A. Reduce injections into the economy
   B. Reduce national income
   C. Move the economy away from full employment
   D. Boost aggregate demand

5. An increase in the Pakistan’s government budget deficit ?

   A. Increase Pakistan’s net exports and decrease Pakistan’s net capital outflow
   B. decreases Pakistan’s net exports and Pakistan’s net Capital outflow the Pakistan’s same amount
   C. Increase Pakistan’s net exports and Pakistan’s net capital outflow the same amount
   D. decreases Pakistan’s net exports and increase Pakistan’s net capital outflow

6. Which of the following groups would be most harmed by a UK government budget deficit ?

   A. Foreigners who wish to buy assets in the UK
   B. BAe Systems wishing to sell aircraft to Saudi Arabia
   C. UK residents wishing to buy foreign Produced cars
   D. Lenders of loanable funds

7. An increase in the government budget deficit ?

   A. has no impact on the real interest rate and fails to crowed out investment
   B. decreases the real interest rate and crowds out investment
   C. None of these answers
   D. Increases the real interest rate and crowds out investment

8. What is called when government spending overwhelms government revenue resulting in government borrowing ?

   A. Budget deficit
   B. Deficient financing
   C. Unbalanced spending
   D. Deficit spending

9. Suppose two economists are arguing about policies that deal with unemployment. One economist says. The government could lower unemployment by one percentage point if it would just increase government spending by 50 billion dollars the other economist responds Nonsense and poppycock! If the government spent an additional 50 billion dollars it would reduce unemployment by only one tenth of one percent. and that effect would only be temporary! These economists ?

   A. None of these answers
   B. Disagree because they have different scientific judgments
   C. really don’t disagree at all. It just appears that they disagree
   D. disagree because they have different values

10. Starting from a balanced budget, for a given tax rate, an increasing in income will cause the government budget to ?

    A. move into surplus
    B. move into deficit
    C. remain unchanged
    D. None of the above above