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.Management Sciences
Category: Fiscal And Monetary Policy
The marginal rate of tax paid is ?
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
The parable of Riding a Switchback suggest that stabilizing policy ?
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
Automatic stabilizers act to ______ government expenditures and _______ government revenue during an expansionary period?
A. increase; increase
B. decrease; increase
C. increase; decrease
D. decrease; decrease
If the state Bank of Pakistan wished to pursue an expansionary monetary policy it would ?
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
The implementation lag for monetary policy is generally ?
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
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
The public Sector Net Cash Requirement (PSNCR) is ?
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
Imagine there is no tax on income up to Rs 1000 after that there is a tax of 505 what is the average tax rate on an income of Rs 20,000 ?
A. Rs 50000
B. 20%
C. 25%
D. Rs 10000
If the marginal rate of tax is 40% and consumers income increase from Rs10,000 to Rs12,000 ?
A. The amount of tax paid will increase by Rs4,800
B. The amount of tax paid will increase by Rs4,000
C. The amount of tax paid will increase by Rs 800
D. The total tax paid will be Rs4,800
As the required reserve ratio is decreased the money multiplier ?
A. could either increase or decrease
B. decrease
C. increase
D. remain the same, as long as bank hold no excess reserves
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