Beyond a certain point deficit financing will certainly lead to (1) inflation (2) deflation (3) recession (4) economic stagnation

Beyond a certain point deficit financing will certainly lead to (1) inflation (2) deflation (3) recession (4) economic stagnation
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inflation
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Beyond a certain point deficit financing will certainly lead to - (1) inflation (2) deflation (3) recession (4) economic stagnation

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.

Stagflation is a situation of - (1) stagnation and deflation (2) stagnation and recession (3) stagnation and inflation (4) stagnation and recovery

Description : Stagflation is a situation of - (1) stagnation and deflation (2) stagnation and recession (3) stagnation and inflation (4) stagnation and recovery

Last Answer : (3) stagnation and inflation Explanation: Stagflation is a situation of stagnation in which the inflation rate is high, the economic growth rate slows down, and unemployment remains steadily high. Stagflation occurs ... t growing but prices are, which is not a good situation for a country to be in

Stagflation is a situation of (1) stagnation and deflation (2) stagnation and recession (3) stagnation and inflation (4) stagnation and recovery

Description : Stagflation is a situation of (1) stagnation and deflation (2) stagnation and recession (3) stagnation and inflation (4) stagnation and recovery

Last Answer :  stagnation and inflation

What happens when there is a demand deficiency in an economy? (1) Poverty (2) Stagnation (3) Recession (4) Inflation

Description : What happens when there is a demand deficiency in an economy? (1) Poverty (2) Stagnation (3) Recession (4) Inflation

Last Answer : (2) Stagnation Explanation: Deficient demand refers to the situation when aggregate demand for goods and services falls short of aggregate supply of output which is produced by fully employing ... which both capital and labor are redundant relative to the opportunities for employing them profitably.

What happens when there is a demand deficiency in an economy? (1) Poverty (2) Stagnation (3) Recession (4) Inflation

Description : What happens when there is a demand deficiency in an economy? (1) Poverty (2) Stagnation (3) Recession (4) Inflation

Last Answer : Stagnation

When too much money is chasing too few goods, the situation is - (1) deflation (2) inflation (3) recession (4) stagflation

Description : When too much money is chasing too few goods, the situation is - (1) deflation (2) inflation (3) recession (4) stagflation

Last Answer : (2) inflation Explanation: Demand-pull inflation is asserted to arise when aggregate demand in an economy outpaces aggregate supply. It involves inflation rising as real gross domestic product rises and ... few goods", since only money that is spent on goods and services can cause inflation.

When too much money is chasing too few goods, the situation is - (1) Deflation (2) Inflation (3) Recession (4) Stagflation

Description : When too much money is chasing too few goods, the situation is - (1) Deflation (2) Inflation (3) Recession (4) Stagflation

Last Answer : (2) Inflation Explanation: Inflation occurs when too much money is chasing too few goods. The prevailing view in mainstream economics is that inflation is caused by the interaction of the supply of ... prices is a result from an increase in the supply of money by central banking authorities.

When too much money is chasing too few goods, the situation is (1) deflation (2) inflation (3) recession (4) stagflation

Description : When too much money is chasing too few goods, the situation is (1) deflation (2) inflation (3) recession (4) stagflation

Last Answer : inflation

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

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

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

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

Is deflation "worse" than inflation?

Description : Is deflation "worse" than inflation?

Last Answer : When you are in a period of deflation people hold off buying goods and services on the sure knowledge that if they wait a while those goods will be available at a lower price. This then decreases ... burnt bank notes to keep warm as they were so worthless in comparison to wood and coal as fuel.

Stagflation refers to a situation which is characterized by - (1) stagnant employment and deflation (2) deflation and rising unemployment (3) inflation and rising employment. (4) inflation and rising unemployment

Description : Stagflation refers to a situation which is characterized by - (1) stagnant employment and deflation (2) deflation and rising unemployment (3) inflation and rising employment. (4) inflation and rising unemployment

Last Answer : (4) inflation and rising unemployment Explanation: Stagflation describes a situation where an inflation rate is high, the economic growth rate slows down, and unemployment remains steadily high ... economic policy since actions designed to lower inflation may exacerbate unemployment, and vice versa.

Pump priming should be resorted to at a time of? (1) Inflation (2) Deflation (3) Stagflation (4) Reflation

Description : Pump priming should be resorted to at a time of? (1) Inflation (2) Deflation (3) Stagflation (4) Reflation

Last Answer : (2) Deflation Explanation: Pump priming is the action taken to stimulate an economy, usually during a recessionary/deflationary period, through government spending, and interest rate and tax reductions. ... the injection of funds, with the goal of prompting higher demand for goods and services.

Stagflation refers to a situation which is characterised by (1) stagnant employment and deflation (2) deflation and rising unemployment (3) inflation and rising employment. (4) inflation and rising unemployment

Description : Stagflation refers to a situation which is characterised by (1) stagnant employment and deflation (2) deflation and rising unemployment (3) inflation and rising employment. (4) inflation and rising unemployment

Last Answer : inflation and rising unemployment

Pump priming should be resorted to at a time of ? (1) Inflation (2) Deflation (3) Stagflation (4) Reflation

Description : Pump priming should be resorted to at a time of ? (1) Inflation (2) Deflation (3) Stagflation (4) Reflation 

Last Answer : Deflation

Development means economic growth plus (1) Inflation (2) Deflation (3) Price stability (4) Social change

Description : Development means economic growth plus (1) Inflation (2) Deflation (3) Price stability (4) Social change

Last Answer : (4) Social change

Economic growth is normally coupled with? A. Inflation B. Hyper Inflation C. Deflation D. Stagflation

Description : Economic growth is normally coupled with? A. Inflation B. Hyper Inflation C. Deflation D. Stagflation

Last Answer : A. Inflation

Development means economic growth with: A. Price Stability B. Social Change C. Inflation D. Deflation

Description : Development means economic growth with: A. Price Stability B. Social Change C. Inflation D. Deflation

Last Answer : B. Social Change

Gresham's law is related to - (1) Consumption and demand (2) Supply and demand (3) Circulation of money (4) Deficit financing

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.

Interest paid by the government on the loans raised is called - (1) Debt Servicing (2) Deficit Financing (3) Discounted Budgeting (4) Bridge-loan

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."

Deficit financing is an instrument of - (1) monetary policy (2) credit policy (3) fiscal policy (4) tax policy

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.

An open economy is one wherea. Deficit financing is absentb. No export activitiesc. No import activitiesd. Economy opened to the world

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.

Deficit financing leads to (a) Price rise (b) Price fall (c) Price control (d) None of the above

Description : Deficit financing leads to (a) Price rise (b) Price fall (c) Price control (d) None of the above

Last Answer : a) Price rise

Gresham’s law is related to (1) Consumption and demand (2) Supply and demand (3) Circulation of money (4) Deficit financing

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

Interest paid by the government on the loans raised is called (1) Debt Servicing (2) Deficit Financing (3) Discounted Budgeting (4) Bridge-loan

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

Deficit financing is an instrument of (1) monetary policy (2) credit policy (3) fiscal policy (4) tax policy

Description : Deficit financing is an instrument of (1) monetary policy (2) credit policy (3) fiscal policy (4) tax policy

Last Answer : fiscal policy

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 spending is $2000. In order to avoid recessions and inflation (to have equilibrium), the government should have a: a. balanced budget b. budget deficit of $1000 c. budget surplus of $1000 d. budget deficit of $2000 C C A A C

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

The external environment factor that includes: Factors that have a less immediate effect on a business such as the nation's rate of inflation or recession, unemployment rate, or standard of living, is (a) Political factors ; (b) Sociological factors ; (c) Indirect economic factors ; (d) Direct economic factors

Description : The external environment factor that includes: Factors that have a less immediate effect on a business such as the nation's rate of inflation or recession, unemployment rate, or standard of living, is ... ; (b) Sociological factors ; (c) Indirect economic factors ; (d) Direct economic factors

Last Answer : ; (c) Indirect economic factors ;

What is the difference between inflation and deflation?

Description : What is the difference between inflation and deflation?

Last Answer : I don’t think there is any difference, they are the same.

In India, Inflation measured by the : A. National Income Deflation B. Wholesale Price Index number C. Consumer Price Index D. None of above

Description : In India, Inflation measured by the : A. National Income Deflation B. Wholesale Price Index number C. Consumer Price Index D. None of above

Last Answer : C. Consumer Price Index

Short term contractions and expansions in economic activity are called (1) Expansions (2) Recession (3) Deficits (4) The business cycle

Description : Short term contractions and expansions in economic activity are called (1) Expansions (2) Recession (3) Deficits (4) The business cycle

Last Answer : (4) The business cycle Explanation: The business cycle is the fluctuation in economic activity that an economy experiences over a period of time. It is basically defined in terms of periods ... incomes. During recessions, the economy contracts, as measured by decreases in the above indicators.

Short term contractions and expansions in economic activity are called _____ (1) Expansions (2) Recession (3) Deficits (4) The business cycle

Description : Short term contractions and expansions in economic activity are called _____ (1) Expansions (2) Recession (3) Deficits (4) The business cycle

Last Answer : The business cycle

The law of diminishing (marginal) returns states that as more of a variable factor is added to a certain amount of a fixed factor, beyond some point: a. Total physical product begins to fall b. The marginal physical product rises c. The marginal physical product falls d. The average physical product falls

Description : The law of diminishing (marginal) returns states that as more of a variable factor is added to a certain amount of a fixed factor, beyond some point: a. Total physical product begins ... The marginal physical product rises c. The marginal physical product falls d. The average physical product falls

Last Answer : c. The marginal physical product falls

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

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

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

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

Deficit financing means (a) Financing budgetary deficit by borrowing (b) Financing budgetary deficit by printing money ; (c) Both ; (d) None

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 ;

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. Where did the INA trials took place?

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

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 Coalfields located? 5. Tulsidas composed his ‘Ramcharitamanasa’ in the reign of which ruler?

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

Under a pegged exchange-rate system, which does not explain why a country would have a balance-of payments deficit? A. Very high rates of inflation occur domestically B. Foreigners discriminate against domestic products C. Technological advance is superior abroad D. The domestic currency is undervalued relative to other currencies

Description : Under a pegged exchange-rate system, which does not explain why a country would have a balance-of payments deficit? A. Very high rates of inflation occur domestically B. Foreigners ... . Technological advance is superior abroad D. The domestic currency is undervalued relative to other currencies

Last Answer : The domestic currency is undervalued relative to other currencies

Should we try to increase inflation to end the Great Recession?

Description : Should we try to increase inflation to end the Great Recession?

Last Answer : You know, I find it almost impossible to get involved in a theoretical debate when this Congress can’t or won’t do anything constructive.

If a paper moistened with lead acetate for five minutes when placed in manhole turns black. The sewer certainly contains A. Hydrogen sulphide B. Carbon dioxide C. Methane D. Oxygen

Description : If a paper moistened with lead acetate for five minutes when placed in manhole turns black. The sewer certainly contains A. Hydrogen sulphide B. Carbon dioxide C. Methane D. Oxygen

Last Answer : ANS: A

Which of the following best indicates economic growth of a Nation? (1) Agriculture income (2) Per capita income (3) Gross industrial production (4) Inflation

Description : Which of the following best indicates economic growth of a Nation? (1) Agriculture income (2) Per capita income (3) Gross industrial production (4) Inflation

Last Answer : (2) Per capita income Explanation: Some economists believe that economic growth is meaningless if it is not distributed across different segments of population. So per capita income is considered by ... Gross Domestic Product (GDP) is the most comprehensive measure of over-all economic performance.

Countries that depend mainly on the export of primary products for their income, are prone to - (1) inflation (2) economic instability (3) increasing unemployment (4) stable economic growth

Description : Countries that depend mainly on the export of primary products for their income, are prone to - (1) inflation (2) economic instability (3) increasing unemployment (4) stable economic growth

Last Answer : (3) increasing unemployment Explanation: Most of the world's poorest countries depend for increasing export earnings on agricultural products that are vulnerable to fluctuating or declining terms of ... primary products were hit particularly hard by falling commodity prices between 1980 and 1984.

The balance of payments equals (a) The difference between household spending over earnings (b) The difference between government expenditure over its income © A measure of the value of economic transactions between residents of a country and rest of the world (d) The difference between inflation and unemployment.

Description : The balance of payments equals (a) The difference between household spending over earnings (b) The difference between government expenditure over its income © A measure of the value of economic ... a country and rest of the world (d) The difference between inflation and unemployment.

Last Answer : © A measure of the value of economic transactions between residents of a country and rest of the world

Countries that depend mainly on the export of primary products for their income, are prone to (1) inflation (2) economic instability (3) increasing unemployment (4) stable economic growth

Description : Countries that depend mainly on the export of primary products for their income, are prone to (1) inflation (2) economic instability (3) increasing unemployment (4) stable economic growth

Last Answer :  increasing unemployment

Which of the following best indicates economic growth of a Nation? (1) Agriculture income (2) Per capita income (3) Gross industrial production (4) Inflation

Description : Which of the following best indicates economic growth of a Nation? (1) Agriculture income (2) Per capita income (3) Gross industrial production (4) Inflation

Last Answer : Per capita income

An increase in aggregate demand is more likely to lead to demand pull inflation (a) If aggregate supply is completely elastic (b) If aggregate supply is completely inelastic © If aggregate supply is unitary elastic (d) If aggregate supply is moderately elastic

Description : An increase in aggregate demand is more likely to lead to demand pull inflation (a) If aggregate supply is completely elastic (b) If aggregate supply is completely inelastic © If aggregate supply is unitary elastic (d) If aggregate supply is moderately elastic

Last Answer : (b) If aggregate supply is completely inelastic

The auditor of financial statements must make very difficult interpretations regarding authoritative literature. Additionally, the auditor must a. Proceed beyond PFRS to assess how the economic activity is portrayed in the financial statements. b. Force management to make certain decisions regarding their financial statements. c. Disregard independence in order to find the underlying truth of the evidenced. Establish new criteria by which financialstatements may be compared.

Description : The auditor of financial statements must make very difficult interpretations regarding authoritative literature. Additionally, the auditor must a. Proceed beyond PFRS to assess how the economic activity is ... of the evidence d. Establish new criteria by which financial statements may be compared.

Last Answer : Proceed beyond PFRS to assess how the economic activity is portrayed in the financial statements

Will the U.S. economy see hyperinflation, or deflation followed by hyperinflation?

Description : Will the U.S. economy see hyperinflation, or deflation followed by hyperinflation?

Last Answer : There are several approaches to correcting our current monetary situation. I personally hope we don't see hyperinflation at all because we are weaning ourselves off the Fed and taking responsibility for our ... Iraq, using that money for infrastructure, and weaning America off the Fed bill by bill.

Deflation is a situation in which - (1) The value of money is falling. (2) The price of goods is increasing. (3) The value of money is increasing. (4) The price level is stagnant.

Description : Deflation is a situation in which - (1) The value of money is falling. (2) The price of goods is increasing. (3) The value of money is increasing. (4) The price level is stagnant.

Last Answer : (3) The value of money is increasing. Explanation: Deflation is a situation where the prices of goods and commodities in a country go down. i.e., there is negative inflation. This is caused ... conversely, deflation increases the real value of money - the currency of a national or regional economy.