In the UK the government ?

Related Mcqs:

1. 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

2. 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

3. 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

4. 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

5. If a government uses barriers to foreign products such as biases against a foreign company’s bids or product standards that go against a foreign company’s product features the government is using ?

   A. Protectionism
   B. exchange controls
   C. exchange facilitators
   D. nontariff trade barriers

6. 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

7. Automatic stabilisers act to ____ government expenditures and ____ government revenues during recessions ?

   A. increase: increase
   B. decrease; decrease
   C. increase; decrease
   D. decrease; increase

8. Automatic stabilizers act to ______ government expenditures and _______ government revenue during an expansionary period?

   A. increase; increase
   B. decrease; increase
   C. increase; decrease
   D. decrease; decrease

9. For the United States suppose the annual interest rate on government securities equals 8 percent while the annual inflation rate equals 4 percent, For Switzerland the annual interest rate on government securities equal 10 percent while the annual inflation rate equals 7 percent the above variables would cause investment funds to flow from ?

   A. the United States to Switzerland causing the dollar to depreciate
   B. the United States to Switzerland causing the dollar to appreciate
   C. Switzerland to the United States causing the franc to depreciate
   D. Switzerland to the United States causing the franc to appreciate

10. For the United States suppose the annual interest rate on government securities equals 12 percent while the annual inflation rate equals 8 percent For Japan the annual interest rate on government securities equals 10 percent while the annual inflation rate equals 5 percent the above variables would cause investment funds to flow from ?

    A. The United States to Japan causing the dollar to depreciate
    B. The United States to Japan causing the dollar to appreciate
    C. The Japan to United States, causing the dollar to depreciate
    D. The Japan to United States, causing the dollar to appreciate