[{"id":213944,"question":"If the Bank of Pakistan wished to pursue a tight monetary policy is would.","choices":[{"text":"Sell government securities on the open market.","value":"A"},{"text":"Reduce the minimum reserve asset ratio","value":"B"},{"text":"Buy government securities on the open market.","value":"C"},{"text":"Lower interest rates","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213943,"question":"By financial crowding our economists mean","choices":[{"text":"What the government borrows cannot be used for private investment","value":"A"},{"text":"Government borrowing drives up interest rates.","value":"B"},{"text":"Bank of England controls on commercial bank lending","value":"C"},{"text":"Credit rationing","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213942,"question":"The idea that the money supply should change to accommodate changes in aggregate demand is associated with the ideas of.","choices":[{"text":"Milton Friedman","value":"A"},{"text":"Ronald reagan","value":"B"},{"text":"Margaret Thatcher","value":"C"},{"text":"John Maynard Keynes","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213941,"question":"Following the work of _____________ in the 1960s, and the controversy associated with these views in the 1970s, there was a revival of interest by economists and government in monetary policy.","choices":[{"text":"Milton Friedman","value":"A"},{"text":"Ronald Reagan","value":"B"},{"text":"Margaret Thatcher","value":"C"},{"text":"John Maynard Keynes","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213940,"question":"As the required reserve ratio is decreased the money multiplier.","choices":[{"text":"Could either increase or decrease","value":"A"},{"text":"Remains the same as long as banks hold no excess reserves","value":"B"},{"text":"Increase","value":"C"},{"text":"Decreases","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213939,"question":"The parable of Riding a Switchback suggests that stabilizing policy.","choices":[{"text":"Is not sufficiently stimulating or contra citing the economy at any time","value":"A"},{"text":"Is desirable","value":"B"},{"text":"Is effective","value":"C"},{"text":"Is stimulating or contracting the economy at the wrong times.","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213938,"question":"The implementation lag for monetary policy is generally","choices":[{"text":"Much longer than it is for fiscal policy","value":"A"},{"text":"Unrelated to central bank action","value":"B"},{"text":"The same as it is for fiscal policy","value":"C"},{"text":"Much shorter than it is for fiscal policy.","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213937,"question":"Time lags which often erode effectiveness of monetary and fiscal policy measures represent.","choices":[{"text":"The change in export and import price.","value":"A"},{"text":"Delays in the response of the economy to stabilization policy.","value":"B"},{"text":"The foreign response to price changes","value":"C"},{"text":"The change in exchang erates","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213936,"question":"The budget deficit tends to decrease when","choices":[{"text":"GDP increases","value":"A"},{"text":"GDP decreases rapidly","value":"B"},{"text":"GDP remains unchanged","value":"C"},{"text":"GDP decreases slightly","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213935,"question":"The negative effect on the economy that occurs when average tax rates increases because taxpayers have moved into higher income brackets during an expansion is.","choices":[{"text":"Fiscal drag","value":"A"},{"text":"The Laffer curve","value":"B"},{"text":"Bracket creep","value":"C"},{"text":"Debt burden","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213934,"question":"Fiscal policy refers to.","choices":[{"text":"The actions of the central bank in controlling the money supply","value":"A"},{"text":"The government's altitude to taxation","value":"B"},{"text":"The spending and taxing policies used by the government to influence the economy","value":"C"},{"text":"The governments regulation of financial intermediaries.","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213933,"question":"According to the supply side model a reduction in the tax rate.","choices":[{"text":"Could reduce the size of any budget deficit","value":"A"},{"text":"Would have no effect on output","value":"B"},{"text":"Would have no effect on consumption","value":"C"},{"text":"None of the above","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213932,"question":"The quantity theory of money allows monetarists to obtain a number of economics predictions by assuming a constant.","choices":[{"text":"Velocity of money","value":"A"},{"text":"Nominal output","value":"B"},{"text":"Overall price level","value":"C"},{"text":"Stock of money","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213931,"question":"At any given level of the interest rate expectations are likely to be___________ optimistic and planned investment is likely to be ______ when _________ is growing rapidly than when it is growing slowly or falling.","choices":[{"text":"Less ; higher ; output.","value":"A"},{"text":"more ; higher ; output","value":"B"},{"text":"less ; lower ; unplanned investment","value":"C"},{"text":"more ; lower ; unplanned investment","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213930,"question":"Keynes suggested that ________ income households consume a ____ proportion of their income than ____ income households.","choices":[{"text":"Low ; smaller ; high","value":"A"},{"text":"Low ; larger ; high","value":"B"},{"text":"low ; smaller ; middle","value":"C"},{"text":"High ; larger ; low","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213929,"question":"The market price of bonds can fluctuate depending on","choices":[{"text":"How many bonds were sold","value":"A"},{"text":"Who bought the bonds","value":"B"},{"text":"The amount of the coupon","value":"C"},{"text":"The interest rate","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213928,"question":"During periods of negative demand shocks deficit target reductions such as those mandated in the Gramm Rudman Hollings Act would tend to.","choices":[{"text":"Stimulate the economy and increase empolyment.","value":"A"},{"text":"Result in additional recessionary declines in employment and income","value":"B"},{"text":"Stimulator defiance spending","value":"C"},{"text":"Have an automatic stabilizing impact upon the economy","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213927,"question":"The ____ lag for fiscal policy is generally _____ than it is for monetary policy.","choices":[{"text":"Recognition ; shorter","value":"A"},{"text":"Recognition ; longer","value":"B"},{"text":"Implementation ; shorter","value":"C"},{"text":"Implementation ; longer","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213926,"question":"Employment tends to _______ whwn aggregate output.","choices":[{"text":"rise, falls","value":"A"},{"text":"rise ; rises","value":"B"},{"text":"falls; rises","value":"C"},{"text":"Not change ; falls","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213925,"question":"In the 1930s, when Keynes was alive a expansionary fiscal policy taking everything else constant would have led to.","choices":[{"text":"A relative large increase in Y, a smaller increate n P","value":"A"},{"text":"A relative large increase in P, a smaller increase in Y","value":"B"},{"text":"Both Y and P increasing with an percentage","value":"C"},{"text":"Only Y increase","value":"D"},{"value":"E"}],"correctAnswer":1}]