Economics - Monetary, Fiscal And Incomes Policy, And Inflation
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This is the MCQs of Economic
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Question 1 of 16
1. Question
Monetary policy effects the _____ and ______
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Question 2 of 16
2. Question
By using fiscal policy, i (e) varying _____ and/or ____ governments achieve goals for output and employment growth as well as price stability
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Question 3 of 16
3. Question
The Bank of England and the Federal Reserve
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Question 4 of 16
4. Question
_____ states that as real GNP per capita rises, people demand relatively more social goods and relatively fewer private goods
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Question 5 of 16
5. Question
If people with higher incomes pay a higher percentage of income in taxes, the income tax structure is:
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Question 6 of 16
6. Question
The property tax wealth tax inheritance tax and income taxes such as persona and corporate taxes are:
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Question 7 of 16
7. Question
fiscal incentives to attract businesses from abroad include
I- tax holidays
II- accelerated depreciation
III- import duty relief
IV- lower tax rates for reinvested business profitsCorrect
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Question 8 of 16
8. Question
Which of the following is NOT true?
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Question 9 of 16
9. Question
Inflation is measured by the:
I- consumer price index (CPI)
II- GDP deflator
III- current account
IV- depreciationCorrect
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Question 10 of 16
10. Question
When the financial system lacks the capability of making judgement about investment opportunities due to asymmetric information leading to potentially bad credit risks lending is subject to:
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Question 11 of 16
11. Question
During Stagflation
I- an increase in aggregate spending will eliminate the recession
II- a decrease in aggregate spending will reduce inflation
III- government faces contradictory goals
IV- the central bank decease money supply to reduce inflationCorrect
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Question 12 of 16
12. Question
Central banks in LDCs generally have less effect on expenditure and output than in LDCs because of
I- an externally dependent banking system
II- a poorly developed securities market
III- a low percentage of demand deposits divided by the total money supply
IV- the relative insensitivity of investment and employment to monetary policiesCorrect
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Question 13 of 16
13. Question
Under financial repression
I- banks engage in non-price rationing of loans
II- banks face pressure for loans to those with political connections
III- banks charge a high premium on foreign investments
IV- banks depend on foreign banks to set interest ratesCorrect
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Question 14 of 16
14. Question
Which of the following are costs of inflation?
I- inflation weakens the creation of credit and capital markets
II- inflation distorts business behavior especially investment behaviour
III- inflation increase the price of foreign goods relative to domestic goods
IV- Inflation imposes a tax on the holders of moneyCorrect
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Question 15 of 16
15. Question
With ____ prices rise in the first sector, remain the same in the second and increase overall
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Question 16 of 16
16. Question
Demand pull inflation result from
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