A. delays in the response of the economy is stabilization policy
B. the foreign response to price changes
C. the change in exports and imports prices
D. the change in exchange rates
Related Mcqs:
- Fiscal policy is weak under floating exchanges rates as fiscal expansion ?
A. crowds out imports
B. crowds out public consumption
C. crowds out exports
D. reduces the budget deficit - If a country’s policy makers were to continuously use expansionary monetary policy in an attempt to hold unemployment below the natural rate the long-run result would be ?
A. an increase in the level of output
B. a decrease in the unemployment rate
C. an increase in the rate of inflation
D. All of these answers - In the early eighties, the Federal Reserve pursed a tight monetary policy. All else being equal. the impact of that policy was to interest rates in the United States relative to those in Europe and cause the dollar to _______ against European currencies?
A. decrease; depreciate
B. decrease; appreciate
C. increase; depreciate
D. increase; appreciate - What is called the sequence of economic activity which is typically characterized by recession, fiscal recovery, growth and fiscal decline ?
A. Economic Cycle
B. Business Cycle
C. Complete Cycle
D. Cycle Business - How is termed the economic theories or Maynard Keynes especially those which advocate government monetary and fiscal and stimulate business activity ?
A. Market Economy
B. Harvard Group
C. Keynesian
D. London Group - Goals are achieved through ____ such a monetary fiscal, exchange rate tariff tax subsidy, business incentive foreign investment and foreign aid?
A. indicative plan
B. central bank policies
C. central planning
D. instrument variables - Fiscal Policy refers to ?
A. The government regulation of financial intermediaries
B. The spending and taxing policies used by the government to influence the economy
C. The actions of the central bank in controlling the money supply
D. The government’s attitude to taxation - A reflationary (expansionist) fiscal policy could include ?
A. Lower interest rates
B. Increased lending by the banks
C. An increase in corporation tax
D. An increase in discretionary government spending - If the state Bank of Pakistan wished to pursue an expansionary monetary policy it would ?
A. increase the minimum reserve asset ratio.
B. buy government securities on the open market
C. raise interest rates
D. sell government securities on the open market - If the State Bank of Pakistan wished to pursue a tight monetary policy it would ?
A. reduce the minimum reserve asset ratio.
B. buy government securities on the open market
C. lower interest rates
D. sell government securities on the open market
