A. Discourage consumption of positive externalities
B. Discourage consumption of public goods
C. Discourage consumption of merit goods
D. Discourage consumption of negative externalities
0
In a regressive tax system ?
0
If the economy grows the government’s budget position will automatically ?
A. The amount of tax paid increase with income
B. The marginal rate of tax decrease with more income
C. The average rate of tax falls as income increase
D. The average rate of tax is constant as income increases
0
If the marginal rate of tax is 40% and consumers income increase from Rs10,000 to Rs12,000 ?
A. worsen
B. Improve
C. Stay the same
D. Increase with inflation
0
A reflationary (expansionist) fiscal policy could include ?
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 of tax paid will increase by Rs 800
D. The total tax paid will be Rs4,800
0
Over-funding is when the State Bank of Pakistan ?
A. Lower interest rates
B. Increased lending by the banks
C. An increase in corporation tax
D. An increase in discretionary government spending
0
If the State Bank of Pakistan wished to pursue a tight monetary policy it would ?
A. sells less government bonds than are required to finance the PSBR
B. sells more government bonds than are required to finance the PSBR
C. sells government securities on the open market
D. buys government securities on the open market
0
Goodhart’s Law suggests that ?
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 open market
0
As the required reserve ratio is decreased the money multiplier ?
A. bad money drives out good
B. monetary policy can only be effective if it is a long-term policy
C. controlling one part of the money supply will merely result in that item becoming less important
D. the money supply must only expand at the rate of growth of real national income