As an economy grows ?

Related Mcqs:

Fiscal Policy refers to ?

A. The government regulation of financial intermediaries B. The spending and taxing policies used by the government to influence the economy C. The actions of the central bank in controlling the money supply D. The government’s attitude to taxation...

By controlling the monetary base economists mean ?

A. making banks keep a certain % of their assets as M0 B. controlling the money multiplier C. restricting the amount of cash in circulation D. not allowing commercial banks to issue notes and coins...

Fiscal drag occurs when ?

A. Tax bands do not increase with inflation B. Tax rates move inversely with inflation C. Government spending falls to reduce aggregate demand D. Tax banks increase with inflation...

Goodhart’s Law suggests that ?

A. bad money drives out good B. monetary policy can only be effective if it is a long-term policy C. controlling one part of the money supply will merely result in that item becoming less important D. the money supply must only expand at the rate of growth of real national income...

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

A. reduce the minimum reserve asset ratio. B. buy government securities on the open market C. lower interest rates D. sell government securities on the open market...