Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Business Economics Expert

MCQ s on multiplier, MPC, fiscal policy, aggregate demand also budget deficit

1. ____ taxes are designed to take the same percentage of high incomes as compared to lower incomes.

1. Progressive

2. Regressive

3. Proportional

4. Negative

2. If the marginal propensity to consume is 2/3, the multiplier is:

1. 30.

2. 66.

3. 1.5.

4. 3.

3. If the government decides to spend an extra $5 billion on health care which they would otherwise have spent on road construction also the MPC = 0.75, Illustrate what is the effect on AD?

1. It has no effect.

2. It increases by $5 billion.

3. It increases by $15 billion.

4. It increases by $20 billion.

4. An increase in transfer payments, combined with a decrease in government purchases, would:

1. Increase AD.

2. Decrease AD.

3. Leave AD unchanged.

4. Have an indeterminate effect on AD.

5. Contraction fiscal policy consists of:

1. Increased government purchases, increased taxes also increased transfer payments.

2. Decreased government purchases, decreased taxes also decreased transfer payments.

3. Decreased government purchases, increased taxes also decreased transfer payments.

4. Increased government purchases, decreased taxes also increased transfer payments.

6. The smaller the MPC:

1. The smaller the fraction of an increase in AD due to an increase in government purchases which is consumption.

2. The greater the fraction of an increase in AD due to an increase in government purchases which is consumption.

3. The greater the change in government purchases required to achieve a given change in AD.

4. Both a) also c).

5. Both b) also c).

7. An increase in government purchases or a decrease in taxes, other things being equal, will tend to:

1. Increase interest rates also increase net exports.

2. Increase interest rates also decrease net exports.

3. Decrease interest rates also increase net exports.

4. Decrease interest rates also decrease net exports.

8. If there is initially a federal budget deficit also government purchases also taxes both rise:

1. AD increases also the budget deficit increases.

2. AD increases also the budget deficit decreases.

3. AD decreases also the budget deficit increases.

4. AD decreases also the budget deficit decreases.

5. There is an indeterminate effect on both AD also the budget deficit.

9. AD will shift to the right, other things being equal, Whenever:

1. The government budget surplus increases because government purchases rose.

2. The government budget surplus increases because taxes fell.

3. The government budget surplus increases because transfer payments rose.

4. Under any of the above circumstances.

5. Under none of the above circumstances.

10. During a recession, total welfare payments also employment insurance payments automatically increase while income taxes automatically decrease. Which of the following best describes the effect of these changes on aggregate demand?

1. Aggregate demand will be less than it would be without these automatic stabilizers.

2. Aggregate demand will be the same as it was before the recession.

3. Aggregate demand will be more than it would be without these automatic stabilizers.

4. Aggregate demand will be greater than it was before the recession.

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M916499

Have any Question? 


Related Questions in Business Economics

Assignmentarticle reportplease select a marketing topic you

Assignment Article Report Please select a marketing topic you learned and then search in the Wall Street Journal (either online or hardcopy *) and select an article about that topic within the last 12 months. To do this, ...

Assignment -consider the following cobb douglas production

Assignment - Consider the following Cobb Douglas production function where Y is maize output, X 1 is labour input, and X 2 is the capital. Data for estimating this equation is given in the Table below. Y = β 0 X 1i β_1 X ...

Cite the sources used to answer this question provide the

Cite the source(s) used to answer this question. Provide the source(s) below your response and apply APA guidelines for references. 1) Class, is it possible for a business to show an accounting profit, but actually earn ...

What is the relationship between economy business and

What is the relationship between economy, business, and society? -6 page essay (includes only ONE page for references,but the cover page is not included in the 6 page requirement) -Double spaced -APA format

Assignmentpart idirections please write a paper that is at

Assignment PART I Directions: Please write a paper that is at least two to three pages in length in which you address the questions below. Write your paper in APA format with at least one cited scholarly reference. Revie ...

1what is the production possibilities curve and how is it

1. What is the production possibilities curve and how is it useful? 2. What 4 factors contribute to determining any point in this model? 3. How would we apply this framework to the real world? 4. You are planning to expa ...

Allocation and allotments please respond to the following1

"Allocation and Allotments" Please respond to the following: 1. From the first e-Activity, examine and evaluate the disparity of Georgia budget allocation for education and property tax to the various localities. Based o ...

Chapter 1 managing changeq1 figure 176 shows how bad an

Chapter 1 Managing change Q1 Figure 1.76 shows how bad an implementation can become. Action needs to be taken to prevent this kind of situation. What would you recommend should be done? Q2 You are the project manager for ...

Assignmentinstructions1 select an illegal activity and

Assignment Instructions 1. Select an illegal activity and transform/mask its' true purpose with the disguise of a legitimate business operation. In other words, create a start-up business that would be viewed as a legal ...

Question 1 for the following situations calculate

Question 1 . For the following situations, calculate elasticity of demand and comment on the answer.                             When the price of commodity X was Rs. 12/-, 40 units it were demanded. When the price decre ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro