A. Decrease tax receipts
B. Worsen the balance of trade
C. Automatically cause an increase in government spending
D. causes an increase in injections into the economy
Related Mcqs:
- When an increase in government purchases increases the income of some people, and those people spend some of that increase in income on additional consumer goods, we have seen a demonstration of ?
A. The multiplier effects
B. supply side economics
C. None of these answers
D. The crowding out effect - Within the circular flow of income, an increase in domestic income will tend to increase ?
A. exports
B. taxes
C. inventories
D. imports - 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 - If an increase in investment leads to a bigger increase in national income this called the ?
A. Accelerator
B. Aggregate demand
C. Monetarism
D. Multiplier - Gross National income is always more than Net National income because it includes ?
A. Foreign income
B. Capital consumption allowance
C. Indirect taxes
D. Direct taxes - An increase in consumption at any given level of income is likely to lead to ?
A. A fall is savings
B. An increase in exports
C. A fall in taxation revenue
D. A decrease in import spending - The World Bank’s GNP per capita classification for low income middle income and high income countries respectively is ?
A. less than $900, $900-$9000 and more than $9000
B. less than $5000, $5000-$15000 and more than $15000
C. less than $100, $100-$1000 and more than $1000
D. less than $5000, $5000-$150000 and more than $150000 - A tax for which high income taxpayers pay a smaller fraction of their income than do low income taxpayers is known as ?
A. a proportional tax
B. a regressive tax
C. an equitable tax
D. a progressive tax - If the income tax rate changes from 30% to 40% on income over Rs30,000 and a person’s income is Rs 31,000 then her marginal tax rate is ?
A. 30%
B. 10%
C. 70%
D. 40% - An increase in national income is ?
A. Likely in increase exports
B. Likely to decrease savings
C. Likely to decrease investment
D. Likely to increase spending on imports
