Economics Mcqs - Page 153 of 269

When an increase in government purchases increases the income of some people, and those people spend some of that increase in income on additional consumer goods, we have seen a demonstration of ?

A. The multiplier effects
B. supply side economics
C. None of these answers
D. The crowding out effect

In the EMU a country’s competitiveness can change because of ?

A. interest rate adjustment
B. central bank intervention in the Forex
C. domestic wage and price adjustment
D. devaluation

Which of the following statements about stabilization policy is not true ?

A. Many economists prefer automatic stabilizers because they affect the economy with a shorter lag than activist stabilization policy
B. None of these answers are true
C. Long lags enhance the ability of policy makers to fine tune the economy
D. When policy makers implement activist stabilization policies there is a significant risk that their policies may actually have a destabilizing effect

What is meant by an objective ?

A. A policy
B. A way of reaching a target
C. A target
D. A strategy

Which of the following best describes how an increase in the money supply shift the aggregate demand curve ?

A. The money supply shifts right prices fall spending increases and the aggregate demand curve shifts right
B. The money supply shifts right the interest rate rises investment decreases and the aggregate demand curve shifts left
C. The money supply shifts right the interest rate falls, investment increases, and the aggregate demand curve shifts right
D. The money supply shifts right, prices rise, demand curve shifts left

Which does the government not control directly ?

A. Spending on health
B. Spending on defence
C. Firms investment decisions
D. Spending on education

When money demand is expressed in a graph with the interest rate on the vertical axis and the quantity of money on the horizontal axis an increase in the interest rate ?

A. None of these answers
B. decrease the quantity demanded of money
C. increase the quantity demanded of money
D. decreases the demand for money
E. increases the demand for money

When an increase in government purchases increases the income of some people, and those people spend some of that increase in income on additional consumer goods, we have seen a demonstration of ?

In the EMU a country’s competitiveness can change because of ?

Which of the following statements about stabilization policy is not true ?

What is meant by an objective ?

Which of the following best describes how an increase in the money supply shift the aggregate demand curve ?

Which does the government not control directly ?

When money demand is expressed in a graph with the interest rate on the vertical axis and the quantity of money on the horizontal axis an increase in the interest rate ?

Which of the following can the government not use directly to control the economy ?

For the Eurozone countries, the most important source of the downward slope of the aggregate demand curve is probably ?

Which of the following is a possible government objective as opposed to a policy ?

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