A. increase injections
B. Reducing taxation rates
C. Reducing interest rates
D. Reducing government spending
Related Mcqs:
- A reflationary (expansionist) fiscal policy could include ?
A. Lower interest rates
B. Increased lending by the banks
C. An increase in corporation tax
D. An increase in discretionary government spending - If a country’s policy makers were to continuously use expansionary monetary policy in an attempt to hold unemployment below the natural rate the long-run result would be ?
A. an increase in the level of output
B. a decrease in the unemployment rate
C. an increase in the rate of inflation
D. All of these answers - According to the Phillips curve, in the short run, if policy makers choose an expansionary policy to lower the rate of unemployment ?
A. The economy will experience an increase in inflation
B. The economy will experience a decrease in inflation
C. Inflation will be unaffected if price expectations are unchanging
D. None of these answers - Suppose a wave of investor and consumer optimisms has increased spending so that the current level of input exceeds the long-run natural rate If policy makers choose to engage in activist stabilization policy they should ?
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 - In the early eighties, the Federal Reserve pursed a tight monetary policy. All else being equal. the impact of that policy was to interest rates in the United States relative to those in Europe and cause the dollar to _______ against European currencies?
A. decrease; depreciate
B. decrease; appreciate
C. increase; depreciate
D. increase; appreciate - A deflationary policy could include ?
A. increasing injections
B. Reducing taxation rates
C. Reducing interest rates
D. Reducing government spending - Which of the following would be considered a supply-side policy ?
A. An increase in the minimum wage that would cause consumer spending to increase
B. Investment tax credits for businesses to encourage investment
C. Restrictions placed on the amount that can be imported
D. An increased in government spending that would lead to increased aggregate demand - Reaganomics was a radical shift in Policy aimed at direct tackling ?
A. The charities economy
B. The demand side of the country
C. The underground economy
D. the supply side of the economy - Advocates of industrial policy maintain that government should ?
A. pursue free trade as a policy that leads to maximum global efficiency
B. grant subsidies to firms offering potential comparative advantage
C. provide loans to domestic workers in exporting industries
D. increase interest rates on loans made to firms in import-competing industries - An example of a trade policy is ?
A. A tariff on sugar
B. All are examples of trade policy
C. capital flight because it increases a country’s net exports
D. an increase in the government budget deficit because it reduces a country’s net exports
