A. Reduce injections into the economy
B. Reduce national income
C. Move the economy away from full employment
D. Boost aggregate demand
Related Mcqs:
- 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 - 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 - 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 - For given government spending and taxation the government budget deficit will grow in _________ and decline in __________?
A. booms, booms
B. recession, recession
C. booms, recessions
D. recessions, booms - Which of the following government policies is least likely to increase likely to increase growth in Africa ?
A. increase expenditure on public education
B. eliminate civil war
C. All of these answers would increase growth
D. increase restrictions on the importing of American tractors and electronics - 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 - If an increase in the budget deficit reduces national saving and investment we have witnessed a demonstration of ?
A. intermediation
B. equity finance
C. crowding out
D. the investment fund effect - An increase in the budget deficit will ?
A. raise the real interest rate and decrease the quantity of loanable funds demanded for investment
B. lower the real interest rate and increase the quantity of loaable funds demanded for investment
C. raise the real interest rate and increase the quantity of loandable funds demanded for investment
D. lower the real interest rate and decrease the quantity of loanable funds demanded for investment - An increase in the budget deficit is ?
A. an increase in public saving
B. a decrease in private saving
C. None of these answers
D. a decrease in public savings - 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
