A. GDP decrease rapidly
B. GDP remains unchanged
C. GDP decrease slightly
D. GDP increase
Related Mcqs:
- 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 - The migration of employable workers from low-paying nations to high-paying nations tends to decrease ?
A. total wage income in the world
B. wage disparities
C. business or capitalist income in the world
D. the productivity of labor - Fiscal deficit in the budget means ?
A. Revenue deficit plus the net borrowings of the government
B. Budgetary deficits plus the net borrowings of the government
C. Capital deficit plus revenue deficit
D. Primary deficit minus capital deficit - 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 - 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 - 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 - 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 - An increase in the Pakistan’s government budget deficit ?
A. Increase Pakistan’s net exports and decrease Pakistan’s net capital outflow
B. decreases Pakistan’s net exports and Pakistan’s net Capital outflow the Pakistan’s same amount
C. Increase Pakistan’s net exports and Pakistan’s net capital outflow the same amount
D. decreases Pakistan’s net exports and increase Pakistan’s net capital outflow - 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 - 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
