A. lender of less resort
B. financial intermediation
C. Open Market operations
D. Financial regulation
Economics Mcqs
Central banks prefer to fix the …. and accept the resulting …..?
A. demand for money, interest rate
B. interest rate equilibrium money supply
C. demand for money equilibrium money supply
D. interest rate, demand for money
A reduction in interest rates, causes an increases in the monetary base that results in an ……… in the availability of consumer credit and a …….. in the cost of consumer credit?
A. reduction, increase
B. reduction, reduction
C. increase, reduction
D. increase , increase
Monetary policy effects the ……… and ……….?
A. reserve, unemployment
B. money supply, interest rate
C. taxes, exchange rate
D. stock price, minimum wage
The Bank of England and the Federal Reserve ?
A. are central banks
B. are branches of commercial banks
C. use fiscal policy to influence GDP
D. loan money to most of LDC commercial banks
If people with higher incomes pay a higher percentage of income in taxes, the income tax structure is ?
A. progressive
B. regressive
C. value added taxes (VAT)
D. excise taxes
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 profits
Inflation is measured by the ?
I- consumer price index (CPI)
II- GDP deflator
III- current account
IV- depreciation
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 inflation
With ……. prices rise in the first sector, remain the same in the second and increase overall?
A. ratchet inflation
B. inflationary expectations
C. import substitution
D. demand pull inflation