An increase in the Pakistan’s government budget deficit ?

Related Mcqs:

1. 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

2. 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

3. A significant increase in the government budget deficit is likely to ?

   A. Reduce injections into the economy
   B. Reduce national income
   C. Move the economy away from full employment
   D. Boost aggregate demand

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. The budget deficit tends to decrease then ?

    A. GDP decrease rapidly
    B. GDP remains unchanged
    C. GDP decrease slightly
    D. GDP increase