A. could either increase or decrease
B. decrease
C. increase
D. remain the same, as long as bank hold no excess reserves
Correct Answer: increase ✔
Last Updated: June 11, 2019
Related MCQs
- A government might use tax to ?
- In a regressive tax system ?
- If the economy grows the government’s budget position will automatically ?
- If the marginal rate of tax is 40% and consumers income increase from Rs10,000 to Rs12,000 ?
- A reflationary (expansionist) fiscal policy could include ?
- Over-funding is when the State Bank of Pakistan ?
- If the State Bank of Pakistan wished to pursue a tight monetary policy it would ?
- Goodhart’s Law suggests that ?
- The parable of Riding a Switchback suggest that stabilizing policy ?
- The implementation lag for monetary policy is generally ?
- The budget deficit tends to decrease then ?
- Automatic stabilizers act to ___ government expenditures and _______ government revenue during an expansionary period?
- Net taxes are ?
- As an economy grows ?
- The public Sector Net Cash Requirement (PSNCR) is ?
- The marginal rate of tax paid is ?
- 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 ?
- Fiscal drag occurs when ?
- By controlling the monetary base economists mean ?
- If the state Bank of Pakistan wished to pursue an expansionary monetary policy it would ?
- By financial crowding out economist mean ?
- The idea that the money supply should change to accommodate changes in aggregate demand is associated with the idea of ?
- The multiple by which total deposits can increase for every pound increase in reserves is the ?
- The response lag of stabilization policy represents ?
- Time lags which often erode effectiveness of monetary and fiscal policy measures represent ?
- The negative effect on the economy that occurs when average tax rates increase because taxpayers have moved into higher income brackets during an expansion is ?
- Automatic stabilisers act to ____ government expenditures and ____ government revenues during recessions ?
- Fiscal Policy refers to ?