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 ?
As the required reserve ratio is decreased the money multiplier ?
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?
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 ?

Net taxes are ?

A. taxes paid by firms and households to the government minus the cost of collecting the taxes
B. Taxes paid firms and households to the government minus the transfer payments made to firms and household
C. Taxes paid by firms and households to the government plus transfer payments made to firm and households
D. government expenditures minus government revenues

Correct Answer: Taxes paid firms and households to the government minus the transfer payments made to firms and household ✔

Last Updated: June 11, 2019