I. government reducing budget deficts
II. limiting credit creation and liberalizing trade
III. achieving market-clearing price
IV. restraining public sector employment and wage rates
A. I and II only
B. III and IV only
C. I, II , III and IV
D. None of these
Related Mcqs:
- An agreement between a borrower country and the International Monetary Fund in which the country agrees to revamp its economic policies to provide incentives for higher export earnings and lower imports is a ?
A. debt rescheduling agreement
B. debt service agreement
C. program for growth
D. stabilization program - It is difficult for an actively managed investment fund to outperform an index fund because ?
A. stock markets tend to be inefficient
B. all of these answers
C. index funds are able to buy undervalued stocks
D. actively managed funds trade more often and charge fees for their alleged expertise - What is called the result of a state’s borrowing from its population, from foreign governments or from international institutions ?
A. National debt
B. Public debt
C. Both of them
D. None of them - The exchange rate system that best characterizes the present international monetary arrangement used by industrialized countries is ?
A. freely fluctuating exchange rates
B. adjustable pegged exchange rates
C. managed floating exchange rates
D. pegged or fixed exchange rates - 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 - Government borrows in the form of promissory note to repay the bearer after some fixed days from the date of issue. How is called such borrowing ?
A. Bond
B. Treasury bill
C. Term bound
D. Securities - What can a central bank increase in order to reduce consumer borrowing ?
A. commercial bank deposits
B. government bank deposits
C. government spending
D. interest rates
E. None of these - 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 - Peer borrowing groups of five or so people with joit liability approve loans to other members as a substitute for the bank’s screening process The above statement applies to ?
A. Indonesia’s Badan Kredit Kecamatan (BKK)
B. the Association for Development of Microenterprice
C. Bangladesh’s Grameen Bank
D. the Enterprice credit program in Kolkata - Less demand in the economy may increase unemployment; this may lead to less spending which may reduce demand further. This is called ?
A. The upward accelerator
B. The downward multiplier
C. The upward PPF
D. The downward mpc
