A fiscal expansion in the UK ?

Related Mcqs:

1. Fiscal policy is weak under floating exchanges rates as fiscal expansion ?

   A. crowds out imports
   B. crowds out public consumption
   C. crowds out exports
   D. reduces the budget deficit

2. What is called the sequence of economic activity which is typically characterized by recession, fiscal recovery, growth and fiscal decline ?

   A. Economic Cycle
   B. Business Cycle
   C. Complete Cycle
   D. Cycle Business

3. How is termed the economic theories or Maynard Keynes especially those which advocate government monetary and fiscal and stimulate business activity ?

   A. Market Economy
   B. Harvard Group
   C. Keynesian
   D. London Group

4. Which of the following is a problem for fiscal policy in a currency union ?

   A. The central bank controls interest rates on long-term bonds issued by the governments of the member countries of the currency union
   B. Government of the member countries of the currency union may run large budget deficit and so crowd out private investment
   C. government of the member countries of the currency union may run large budget deficits and so impose costs on other countries by pushing up interest rates on the bonds these countries governments issue
   D. It is difficult to raise enough tax revenue to pay for the operation of the currency union

5. Which of the following is not involved with fiscal policy ?

   A. Income tax
   B. National insurance
   C. VAT
   D. Interest insurance

6. Time lags which often erode effectiveness of monetary and fiscal policy measures represent ?

   A. delays in the response of the economy is stabilization policy
   B. the foreign response to price changes
   C. the change in exports and imports prices
   D. the change in exchange rates

7. Fiscal drag occurs when ?

   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

8. Goals are achieved through ____ such a monetary fiscal, exchange rate tariff tax subsidy, business incentive foreign investment and foreign aid?

   A. indicative plan
   B. central bank policies
   C. central planning
   D. instrument variables

9. What growth rate was witnessed in agriculture sector last fiscal year ?

   A. 1.4%
   B. 2%
   C. 1.9%
   D. 2.9%

10. Expansionary fiscal policy in the classical model will cause aggregate demand to _______ potential output?

    A. exceeds
    B. fall below
    C. fluctuate around
    D. remain equal to