MCQs of Economics – Fiscal And Monetary Policy

Fiscal Policy refers to:

Net taxes are:

Automatic stabilisers act to ____ government expenditures and ____ government revenues during recessions:

Automatic stablisers act to ____ government expenditures and ____ government revenue during an expansionary period

The negative effect on the economy that occurs when average tax rates increase because taxpayers have moved into higher income brackets during an expansion is:

The budget deficit tends to decrease then:

Time lags which often erode effectiveness of monetary and fiscal policy measures represent

The implementation lag for monetary policy is generally

The response lag of stabilisation policy represents:

The parable of Riding a Switchback suggest that stabilizing policy:

The multiple by which total deposits can increase for every pound increase in reserves is the:

As the required reserve ratio is decreased the money multiplier:

The idea that the money supply should change to accommodate changes in aggregate demand is associated with the idea of:

Goodhart’s Law suggests that:

By financial crowding out economist mean:

If the State Bank of Pakistan wished to pursue a tight monetary policy it would:

If the state Bank of Pakistan wished to pursue an expansionary monetary policy it would:

Over-funding is when the State Bank of Pakistan:

By controlling the monetary base economists mean:

A reflationary (expansionist ) fiscal policy could include:

Fiscal drag occurs when

If the marginal rate of tax is 40% and consumers income increase from Rs10,000 to Rs12,000:

Imagine there is no tax on income up to Rs 1000 after that there is a tax of 505 what is the average tax rate on an income of Rs 20,000

If the economy grows the government’s budget position will automatically:

The marginal rate of tax paid is

In a regressive tax system:

The public Sector Net Cash Requirement (PSNCR) is:

A government might use tax to:

As an economy grows: