Fiscal And Monetary Policy

A. Discourage consumption of positive externalities
B. Discourage consumption of public goods
C. Discourage consumption of merit goods
D. Discourage consumption of negative externalities

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

A. worsen
B. Improve
C. Stay the same
D. Increase with inflation

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

A. Lower interest rates
B. Increased lending by the banks
C. An increase in corporation tax
D. An increase in discretionary government spending

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

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

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

A. could either increase or decrease
B. decrease
C. increase
D. remain the same, as long as bank hold no excess reserves

A. is not sufficiently stimulating or contracting the economy at any time
B. is effective
C. is stimulating or contracting the economy at the wrong times
D. is desirable