Category: Fiscal And Monetary Policy

A. increase: increase
B. decrease; decrease
C. increase; decrease
D. decrease; increase

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

A. The total tax paid / total income
B. Total income / total tax paid
C. Change in the tax paid / change in income
D. Change in income / change in tax paid

A. is not sufficiently stimulating or contracting the economy at any time
B. is effective
C. is stimulating or contracting the economy at the wrong times
D. is desirable

A. increase; increase
B. decrease; increase
C. increase; decrease
D. decrease; decrease

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

A. the same as it is for fiscal policy
B. much shorter than it is for fiscal policy
C. mush longer than it is for fiscal policy
D. unrelated to central bank action

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

A. A measure of the country’s trade position
B. A measure of the country’s budget position
C. A measure of the country’s total debt
D. A measure of the government’s monetary stance

A. Rs 50000
B. 20%
C. 25%
D. Rs 10000