Description : Crowding out means that a. a government budget deficit lowers interest rates and causes investment spending to rise b. an increase in marginal tax rates lowers production c. a government ... spending to fall d. a government budget deficit raises American exports and lowers American imports
Last Answer : c. a government budget deficit raises interest rates and causes investment spending to fall
Description : 10. Crowding out means that a. a government budget deficit lowers interest rates and causes investment spending to rise b. an increase in marginal tax rates lowers production c. a ... investment spending to fall d. a government budget deficit raises American exports and lowers American imports
Description : Gresham's law is related to - (1) Consumption and demand (2) Supply and demand (3) Circulation of money (4) Deficit financing
Last Answer : (3) Circulation of money Explanation: Gresham's law is an observation in economics that "bad money drives out good." More exactly, if coins containing metal of different value have the same value as ... 1558 prompted the economist H.D. Macleod to suggest the term Gresham's law in the 19th century.
Description : Interest paid by the government on the loans raised is called - (1) Debt Servicing (2) Deficit Financing (3) Discounted Budgeting (4) Bridge-loan
Last Answer : (1) Debt Servicing Explanation: Debt service is the amount of money required to make payments on the principal and interest on outstanding loans, the interest on bonds. or the principal of maturing bonds. An ... or company unable to make such payments is said to be "unable to service one's debt."
Description : Deficit financing is an instrument of - (1) monetary policy (2) credit policy (3) fiscal policy (4) tax policy
Last Answer : (3) fiscal policy Explanation: In economics, fiscal policy is the use of government revenue collection (taxation) and expenditure (spending) to influence the economy. The two main instruments ... financing in India means the expenditure which in excess of current revenue and public borrowing.
Description : Beyond a certain point deficit financing will certainly lead to - (1) inflation (2) deflation (3) recession (4) economic stagnation
Last Answer : (1) inflation Explanation: Deficit financing is a practice in which a government spends more money than it receives as revenue, the difference being made up by borrowing or minting new funds ... increasing the money supply and the purchasing power of the people which increases the aggregate demand.
Description : An open economy is one where a. Deficit financing is absent b. No export activities c. No import activities d. Economy opened to the world
Last Answer : d. Economy opened to the world A closed economy is one where there is no exporting or importing activity. it is generally a feature of underdeveloped economies.
Description : Gresham’s law is related to (1) Consumption and demand (2) Supply and demand (3) Circulation of money (4) Deficit financing
Last Answer : Circulation of money
Description : Interest paid by the government on the loans raised is called (1) Debt Servicing (2) Deficit Financing (3) Discounted Budgeting (4) Bridge-loan
Last Answer : Debt Servicing
Description : Beyond a certain point deficit financing will certainly lead to (1) inflation (2) deflation (3) recession (4) economic stagnation
Last Answer : inflation
Description : Deficit financing is an instrument of (1) monetary policy (2) credit policy (3) fiscal policy (4) tax policy
Last Answer : fiscal policy
Description : Which among the following is not the instrument of monetary policy A. Deficit financing B. Statutory liquidity Ratio C. Cash reserve ratio D. Open market operation
Last Answer : A. Deficit financing
Description : Deficit financing implies : A. printing new currency notes B. public revenue in excess of public expenditure C. public expenditure in excess of public revenue D. replacing new currency with worn out currency
Last Answer : C. public expenditure in excess of public revenue
Description : Deficit financing means (a) Financing budgetary deficit by borrowing (b) Financing budgetary deficit by printing money ; (c) Both ; (d) None
Last Answer : (c) Both ;
Description : Which of these is one of the causes of inflation? (a) Increase in public expenditure ; (b) Deficit financing ; (c) Increase in administrative prices (d) All the three
Last Answer : (d) All the three
Description : In general, deficit financing can create inflation, but it can be checked if. A) Government expenditure increases the aggregate supply in the aggregate demand ratio B) All the investment is indicated as payment on national debt only C) Only aggregate demand is increased D) All of the above
Last Answer : Answer: D
Description : 1. What is deficit financing? 2. Which snake is not poisonus? 3. Which State has no Panchayati Raj Institution at all? 4. Where is the Main hunting ground for blue whales located? 5. ... blood calcium and phosphate ? 19. Which State does not cultivate wheat? 20. Who wrote the Kalpasutra ?
Last Answer : Answer : 1. Spending in excess of revenue 2. Pythen 3. Nagaland 4. Arctic Ocean 5. Red Fort, Delhi 6. Parallel to the axis 7. 1970 8. Seafarer 9. Atlantic Ocean 10. Acharya ... . Dharma Chakara Pravartana Sutra16. Income 17. Chikmagalur district 18. Parathyroid hormone 19. Tamil Nadu 20. Bhadrabahu
Description : 1. What will be best colours for a Sun umbrella? 2. What is deficit financing? 3. Which is the official language of East African Development Bank? 4. In which State are Namchik-Namphuk ... hours. Howmuch time does Each 15° longitude represent? 20. Which dynasty's founder was an elected king?
Last Answer : Answer : 1. White on top and black on inside 2. Spending in excess of revenue 3. French 4. Arunachal Pradesh 5. Akbar 6. Large intestine 7. Public Accounts Committee 8. 5 9. Jodhpur 10. Atharva Veda ... of Cancer 15. Upagupta 16. Concave mirror 17. Pratibha Ray 18. Arun Shourie 19. One hour 20. Pala
Description : Other things being equal, a decrease in quantity demanded of a commodity can be caused by – (1) a rise in the price of the commodity (2) a rise in the income of the consumer (3) a fall in the price of a commodity (4) a fall in the income of the consumer
Last Answer : (1) a rise in the price of the commodity Explanation: In economics, the law states that, all else being equal, as the price of a product increases, quantity demanded falls; likewise, as the price of a product decreases, quantity demanded increases.
Description : A fall in demand or rise in supply of a commodity— (1) Increases the price of that commodity (2) decreases the price of that commodity (3) neutralizes the changes in the price (4) determines" the price elasticity
Last Answer : (2) decreases the price of that commodity Explanation: The four basic laws of supply and demand are: (1) If demand increases and supply remains unchanged, a shortage occurs, leading to a higher ... (4) If demand remains unchanged and supply decreases, a shortage occurs, leading to a higher price.
Description : The demand for which of the following commodity will not rise in spite of a fall in its price? (1) Television (2) Refrigerator (3) Salt (4) Meat
Last Answer : (3) Salt Explanation: For certain goods called necessities, demand is not related to income. Demand for salt does not increase with the increase in income & does not decrease with the decrease in ... irrespective of income. The demand curve slopes downward for goods like salt, but it is inelastic.
Description : According to the effective demand principle: a) at a certain price, the output shall not be determined by any known factor b) at a certain price, the output will remain unaffected by rise or ... certain price, equilibrium output will be solely determined by the aggregate demand d) none of the above
Last Answer : c) at a certain price, equilibrium output will be solely determined by the aggregate demand
Description : Other things being equal, a decrease in quantity demanded of a commodity can be caused by (1) a rise in the price of the commodity (2) a rise in the income of the consumer (3) a fall in the price of a commodity (4) a fall in the income of the consumer
Last Answer : a rise in the price of the commodity
Description : A fall in demand or rise in supply of a commodity– (1) Increases the price of that commodity (2) decreases the price of that commodity (3) neutralises the changes in the price (4) determines the price elasticity
Last Answer : decreases the price of that commodity
Last Answer : Salt
Description : substantial increase in capital expenditure or revenue deficit leads to —
Last Answer : Fiscal deficit
Description : Acording to Keynesian theory of income determination, at full employment, a fall in aggregate demand causes - (1) a fall in prices of output and resources (2) a fall in real gross National product ... a rise in real gross National product and investment (4) a rise in prices of output and resources
Last Answer : (1) a fall in prices of output and resources Explanation: In 1936, John Maynard Keynes published the book "The General Theory of Employment, Interest and Money to explain the prolonged and ... at a below-full-employment equilibrium. Suppose that the economy is at the full-employment equilibrium.
Description : Devaluation usually causes the internal prices to : (1) fall (2) rise (3) remain unchanged (4) None of the above
Last Answer : (3) remain unchanged Explanation: Devaluation reduces the export price in term of foreign currencies in the world market. As a result the exports are increased so as to increase the revenue ... effects on a country's international trade by alluring traders. But, internal prices remain unaffected.
Description : 10. An increase in the money supply will cause interest rates to a. rise b. fall c. remain unchanged
Last Answer : b. fall
Last Answer : remain unchanged
Description : According to Keynesian theory of income determination, at full employment, a fall in aggregate demand causes (1) a fall in prices of output and resources (2) a fall in real gross National product and ... rise in real gross National product and investment (4) a rise in prices of output and resources
Last Answer : a fall in prices of output and resources
Description : Two Commodities X and UY can be inferred as complementary to each other if (a) Increase in price of one leads to increase in demand of other and vice versa (b) Increase in price of one leads to decrease ... in demand of other one (d) Increase in price of one leads to increase in demand of other one
Last Answer : (b) Increase in price of one leads to decrease in demand of other and vice versa
Description : Two commodities X and Y goods can be inferred as close substitute of each other if - (a) Increase in price of one leads to increase in demand of other and vice versa (b) Increase in price of one ... fall in demand of other one (d) Increase in price of one leads to increase in demand of other one
Last Answer : (a) Increase in price of one leads to increase in demand of other and vice versa
Description : Do you think Trump is trying to reduce the trade deficit by imposing taxes on importers and people who buy imported goods in the form of tariffs?
Last Answer : On the supply side; grain and produce numbers are DROPPING for USA farmers. So, no it is will not reduce deficit because we have reduce what is being sold to China and others impacted by tariffs.
Description : )A currency having a falling exchange rate due to continuing balance of payments deficit is called a- (1) Soft currency (2) Hard currency (3) Scarce currency (4) Surplus currency
Last Answer : (1) Soft currency Explanation: Soft currency is a currency with a value that fluctuates as a result of the country's political or economic uncertainty which may be due to balance of payments ... set unrealistically high exchange rates, pegging their currencies to a currency such as the U.S. dollar
Description : 6. Assume that Potential Real GDP equals $10,000. National Income is therefore $10,000. Of this, consumers will pay $2,000 in taxes, save $1,000, and spend $7,000 on consumer goods. Business Investment ... . budget deficit of $1000 c. budget surplus of $1000 d. budget deficit of $2000 C C A A C
Last Answer : c. budget surplus of $1000
Description : What records a country's transactions (made by individuals, firms and government bodies.) with the rest of the world? a) Trade deficit b) Capital Budget c) Foreign imports d) Balance of Payments or BoP
Last Answer : b) other things remaining equal
Description : Whenever the government spends more than it collects through revenue, the resulting imbalance is known as : a) Public deficit b) Market deficit c) Government deficit d) Budget deficit
Last Answer : d) Budget deficit
Description : Rich countries have deficit in their balance of payments (a) Sometimes. (b) Always. © Never. (d) Alternate years.
Last Answer : (a) Sometimes.
Description : A currency having a falling exchange rate due to continuing balance of payments deficit is called a (1) Soft currency (2) Hard currency (3) Scarce currency (4) Surplus currency
Last Answer : Soft currency
Description : Which of the following is a consequence of inflationary price rise? (1) Obstacle in development (2) Increase in economic inequalities (3) All of these (4) Adverse effect on the balance of payment
Last Answer : (3) All of these Explanation: Inflationary price rise is harmful to a country's economic performance and to the welfare of its citizens. It can create a random redistribution of income given that ... development as it has an adverse effect on saving and investment and causes a fall in growth.
Description : For an inferior good, demand falls when - (1) price rises (2) income rise (3) price falls (4) income falls
Last Answer : (2) income rise Explanation: In economics, income elasticity of demand measures the responsiveness of the demand for a good to a change in the income of the people demanding the good. ... opposite is observed. Normal goods are those for which consumers' demand increases when their income increases.
Description : The equilibrium price of a commodity will definitely rise if there is a/an: (1) increase in supply combined with a decrease in demand. (2) increase in both demand and supply. (3) decrease in both demand and supply. (4) increase in demand accompanied by a decrease in supply.
Last Answer : (4) increase in demand accompanied by a decrease in supply. Explanation: Price of a commodity is always determined by the forces of demand and supply in the market. The price at which ... equilibrium price definitely increases when there is an increase in demand combined with the decrease in supply.
Description : Massive starvation takes place due to: (a) rise in the price of essential commodities (b) decline in production of foodgrains (c) drought (d) both (a) and (b)
Last Answer : (c) drought
Description : Pradhan Mantri Fasal Bima Yojana (PMFBY) was designed by central government to provide a. To rise food price b. To reduce the impact of food price c. Provide loan to farmers d. Price Stabilization
Last Answer : a. To rise food price b. To reduce the impact of food price c. Provide loan to farmers d. Price Stabilization
Description : In a period of inflation and price rise the supply of money remains (1) the same (2) increases (3) decreases (4) increases or decreases proportionately.
Last Answer : increases
Description : Which of the following taxes is such which does not cause rise in price ? (1) Import duty (2) Income tax (3) Octoroi (4) Sales tax
Last Answer : Income tax
Description : Which of the following is a consequence of inflationary price rise ? (1) Obstacle in development (2) Increase in economic inequalities (3) All of these (4) Adverse effect on the balance of payment
Last Answer : All of these
Description : The equilibrium price of a commodity will definitely rise if there is a/an : (1) increase in supply combined with a decrease in demand. (2) increase in both demand and supply. (3) decrease in both demand and supply. (4) increase in demand accompanied by a decrease in supply.
Last Answer : increase in demand accompanied by a decrease in supply.
Description : For an inferior good, demand falls when (1) price rises (2) income rise (3) price falls (4) income falls
Last Answer : income rise