[{"id":213959,"question":"The ratio of debt to GDP will be larger","choices":[{"text":"The lower the real interest rate","value":"A"},{"text":"The lower the growth rate of output","value":"B"},{"text":"The lower the in initial debt ratio","value":"C"},{"text":"The lower the ratio of the primary deficit to GDP","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213958,"question":"The relation between M2 and inflation is tighter than the relation between M1 and inflation because.","choices":[{"text":"M1 is larger than M2","value":"A"},{"text":"The demand for M2 is more stable","value":"B"},{"text":"M1 includes more liquid assets the M2","value":"C"},{"text":"None of the above answers is correct.","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213957,"question":"Those who favor setting the target rate of inflation at about 3% believe.","choices":[{"text":"The cost of moderate inflation can be minimized by indexing the tax system and bonds","value":"A"},{"text":"that the cost of going to 0% is very low","value":"B"},{"text":"That moderate inflation increases money illusion","value":"C"},{"text":"Believe that moderate inflation aggravates the time inconsistency problem","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213956,"question":"Monetary policy can affect output.","choices":[{"text":"this statement is always true","value":"A"},{"text":"This statements always false","value":"B"},{"text":"This statement is true only in the short run","value":"C"},{"text":"This statement is true only in the medium run and the long run","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213955,"question":"Net taxes are.","choices":[{"text":"Government expenditures minus government revenues.","value":"A"},{"text":"Taxes paid by firms and households to the government minus the transfer payments made to firms and household.","value":"B"},{"text":"Taxes paid by firms and household to the government plus transfer payments made to firms and hose holds.","value":"C"},{"text":"Taxes paid by firms and hose hold to the government minus the cost of collecting the taxes.","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213954,"question":"A Political problem with discretionary fiscal policy is the.","choices":[{"text":"Contractionary bias","value":"A"},{"text":"Big state bias","value":"B"},{"text":"Expansionary bias","value":"C"},{"text":"Over reaction bias","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213953,"question":"Which of the following would qualify as an aggregate demand shocks.","choices":[{"text":"An unexpected increase in oil prices","value":"A"},{"text":"A seasonally expected increase in oil prices","value":"B"},{"text":"An unexpected reduction in consumer confidence","value":"C"},{"text":"an anticipated tax cut","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213952,"question":"Which of the following would qualify as an aggregate supply shock.","choices":[{"text":"An unexpected increase in oil prices","value":"A"},{"text":"Seasonally expected increase in oil prices","value":"B"},{"text":"An unexpected reduction in consumer confidence","value":"C"},{"text":"an anticipated tax cut","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213951,"question":"Short run contractionary Fiscal policy would result in.","choices":[{"text":"Aggregate demand moving to the right","value":"A"},{"text":"Aggregate supply moving to the right","value":"B"},{"text":"Aggregate demand moving to the left","value":"C"},{"text":"Aggregate supply moving to the left","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213950,"question":"An example of nondiscretionary fiscal policy would be.","choices":[{"text":"The operation of the welfare state","value":"A"},{"text":"A Federal jobs program adopted to stimulate consumption","value":"B"},{"text":"A tax cut adopted to stimulate consumption","value":"C"},{"text":"An interest rate cut implemented to stimulate consumption","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213949,"question":"An example of discretionary fiscal policy would be.","choices":[{"text":"The operation of the welfare sate","value":"A"},{"text":"The operation of the processive federal income tax","value":"B"},{"text":"A tax cut adopted to stimulate consumption","value":"C"},{"text":"An interest rate out in plummeted to stimulate consumption","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213948,"question":"Fiscal policy is purposeful movements in _____designed to direct an economy","choices":[{"text":"Interest rate","value":"A"},{"text":"Legal structures","value":"B"},{"text":"Government regulations","value":"C"},{"text":"D Government spending and taxes","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213947,"question":"The purpose of fiscal policy is to","choices":[{"text":"Alter the direction of the economy","value":"A"},{"text":"Change people's attitudes toward governemnt","value":"B"},{"text":"Educate people as to the importance of economics","value":"C"},{"text":"Offer insight into the way thing work","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213946,"question":"By controlling the monetary base economists mean","choices":[{"text":"Controlling the money multiplier","value":"A"},{"text":"Restricting the amount of cash in circulation","value":"B"},{"text":"Not allowing commercial banks to issue notes and coins","value":"C"},{"text":"making banks keep a certain % of their assets as M0","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213945,"question":"If the Bank of Pakistan wished to pursue an expansionary monetary policy it would.","choices":[{"text":"Increase the minimum reserve asset ratio","value":"A"},{"text":"Sell government securities on the open market","value":"B"},{"text":"Buy government securities on the open market","value":"C"},{"text":"Raise interest rates.","value":"D"},{"value":"E"}],"correctAnswer":3},{"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}]