A. the real interest rate should fall
B. the real interest rate should rise
C. the impact on the real interest rate is indeterminate
D. the real interest rate should not change
Related Mcqs:
- The property tax wealth tax inheritance tax and income taxes such as persona and corporate taxes are ?
A. indirect taxes
B. direct taxes
C. inelastic
D. value-added tax - If GDP = Rs1,000 Consumption = Rs 600 taxes = Rs 100, and government purchases = Rs200, how much is saving and investment ?
A. Saving = Rs 300 investment = Rs 300
B. Saving = Rs 200 investment = Rs 100
C. Saving = Rs 100 investment = Rs 200
D. Saving = Rs 0 investment = Rs 0 - 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 - How is termed the balance of investment and return; in which investment and return are exactly equal ?
A. Break even
B. Breakeven point
C. Both of them
D. None of them - National Saving (or just saving) is equal to ?
A. none of these answers
B. investment + consumption expenditures
C. private saving + public saving
D. GDP government purchases - Imagine there is no tax on income up to Rs 1000 after that there is a tax of 505 what is the average tax rate on an income of Rs 20,000 ?
A. Rs 50000
B. 20%
C. 25%
D. Rs 10000 - The golden-rule saving rate is the rate of saving that ?
A. gets the highest rate of interest
B. maximizes the level of long-run investment
C. maximizes the level of long-run consumption
D. maximizes human capital - Except for taxes to offset ______ taxes are ______?
A. imperfect competition popular
B. externalities , distortionary
C. inequality , a first best option
D. poor health, unnecessary - Micheal Roemer’s three-sector model shows that growth in the booming export sector I- reduces the price of foreign exchange II- retards other sectors’ growth by reducing incentives to export other commodities III- reduces incentives to replace domestic goods for imports IV- raises factor and input prices for non-booming sectors ?
A. I and III only
B. II and III only
C. I, II and III only
D. I, II , III only IV - If the government increases spending and raises taxes by just enough to finance this increase it will ?
A. leave output unchanged
B. increase output
C. reduce output
D. increase the MPC
