A. leave output unchanged
B. increase output
C. reduce output
D. increase the MPC
Related Mcqs:
- When an increase in government purchases raises incomes shifts money demand to the right raises the interest rate, and lowers investment we have seen a demonstration of ?
A. supply-side economics
B. None of these answers
C. The crowding-out effect
D. The multiplier effects - Government policies that focus on changing taxes and government spending are called ?
A. fiscal policies
B. incomes policies
C. supply-side policies
D. monetary policies - Suppose two economists are arguing about policies that deal with unemployment. One economist says. The government could lower unemployment by one percentage point if it would just increase government spending by 50 billion dollars the other economist responds Nonsense and poppycock! If the government spent an additional 50 billion dollars it would reduce unemployment by only one tenth of one percent. and that effect would only be temporary! These economists ?
A. None of these answers
B. Disagree because they have different scientific judgments
C. really don’t disagree at all. It just appears that they disagree
D. disagree because they have different values - 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 - Except for taxes to offset ______ taxes are ______?
A. imperfect competition popular
B. externalities , distortionary
C. inequality , a first best option
D. poor health, unnecessary - The government increase government spending to try to reduce unemployment This is an example of ?
A. laissez-faire.
B. monetary policy
C. fine tuning
D. automatic stablisers - If the government increases investment tax credits and reduces taxes on the return to saving at the same time ?
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 - What is called when government spending overwhelms government revenue resulting in government borrowing ?
A. Budget deficit
B. Deficient financing
C. Unbalanced spending
D. Deficit spending - If the central bank increases the money supply at the same time as the government increasing spending, it is suggested that investment will ?
A. Suffer even more
B. not be reduced as much as it would have been
C. be replaced by foreign investment
D. be replaced by consumer spending - 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
