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

Related Mcqs:

Suppose a wave of investor and consumer pessimism in the USA causes a reduction in spending If the US federal Reserve (Which has a broader remit than the Bank of England Which is charged only with controlling inflation) chooses to engage in activist stabilization policy it should ?

A. Increase government spending and decrease taxes B. decrease the money supply C. decrease government spending and increase taxes D. decrease interest rates...

If the marginal propensity of consume MPC is 0.75 the value of the multiplier is ?

A. 4 B. 7.5 C. 5 D. 0.75...

When an increase in government purchases raises incomes shifts money demand to the right raises the interest rate, and lowers investment we have seen a demonstration of ?

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

Suppose the government increases its purchases by Rs16 billion. If the multiplier effect exceeds the crowding out effect, then ?

A. The aggregate supply curve shifts to the right by more than Rs 16 billion B. The aggregate demand curve shifts to the left by more than Rs 16 billion C. The aggregate demand curve shifts to the right by more than Rs 16 billion D. the aggregate supply curve shifts to the left by … Suppose the government increases its purchases by Rs16 billion. If the multiplier effect exceeds the crowding out effect, then ?Read More...

Which of the following is an automatic stabilizer ?

A. Spending on public schools B. Military spending C. All of these answers are automatic stabilizers D. spending on the space shuttle E. Unemployment benefits...