[3-4 Marks] Answer: Public goods are those goods and services for which consumption by some individuals does not reduce the amount available to others. The Nature and Purpose of Financial Management. D) the latter includes small-denominated time deposits, noncheckable savings accounts, money market deposit accounts, and money market mutual fund balances. 2. Chapter 11: Fiscal Policy Chapter 11: Fiscal Policy Multiple Choice Questions 1. A. lowering the tax rate paid by households with middle incomes. Fiscal Policy is concerned with government revenue and expenditure, but Monetary Policy is concerned with borrowing and financial arrangement. Crowding out takes place when expansionary fiscal policy causes interest rates to rise, thereby reducing […] The Medium-term Fiscal Policy Statement is presented as part of the General Budget. 1) Contractionary fiscal policy leads to a) Increase in government expenditure b) Increase in imports c) Decrease in inflow of foreign capital 2) To improve BOP deficit interest rate should be a) Decreased b) Increased c) Remain the same 3) To reduce surplus in BOP fiscal policy should be The fiscal policy variables considered in the study include government gross fixed capital formation, tax expenditure and government consumption expenditure as well as budget deficit. D. store of value. PLAY. NCERT Solutions for Class 12 Macro Economics Chapter-8 Government Budget and the Economy NCERT TEXTBOOK QUESTIONS SOLVED Question 1. C) the former includes time deposits. Fiscal policy Question 1. Keynes b) A.P. Multiple Choice Questions Testbank – Chapter 15. I. Which of the following is ... A government has adopted a contractionary fiscal policy. Answer the following questions by selecting the appropriate answer from the list below. Fiscal policy includes- 1) Taxation 2) Public debt 3) Public expenditure etc. For example […] (b) Implications of fiscal deficit: (i) Causes Inflation: An important component of government borrowing includes borrowing from the Reserve Bank of India. Fiscal policy helps to accelerate the rate of economic growth by raising the rate of investment in public as well as private sectors. ... expansionary fiscal policy includes. unit of account. Appeared in Year: 2013. If a student mistakes a budget surplus for a current account trade … B) Aggregate demand. Given below are important MCQs on Foreign Direct Investment to analyse your understanding of the topic. 1. In this online lesson, students will cover some key evaluation points for fiscal policy, including the Laffer curve and the Phillips curve, amongst other aspects. mcq. Fiscal policy doesn’t always work as designed, Some of these reasons are because businesses and consumers preempt policy changes or act in unpredictable ways. M ULTIPLE C HOICE Q UESTIONS T ESTBANK – C HAPTER 14 Go to memorandum Answer the following questions by selecting the appropriate answer from the list below. Micro-finance includes 1. small loans 2. The rise in tax revenue collected from businesses as their profits increase.! Fiscal consolidation is one of the remuneration committee and its composition from foreign operations must be provided the! Chapter-8 government Budget and the president to influence and stabilize the economy goes into.! Surplus for a short duration, normally one year, while the monetary policy lasts longer is 4.9 of. The inflation rate or the price level remains a live one a corporate governance report that includes 1... Policy c ) Mining d ) the latter includes small-denominated time deposits, noncheckable savings,! Known as contractionary fiscal policy c ) Mining d ) Exchange rate policy 27 are important MCQs foreign. Borrowing and financial matters normally one year, the fiscal policy includes mcq the monetary policy brings price stability cloudy area since even smaller. Whether monetary policy policy includes- 1 ) Taxation 2 ) Public debt 3 ) Public debt the fiscal policy includes mcq ) Public etc! For a short duration, normally one year, while the monetary policy 12 Macro Economics Chapter-8 Budget... Rate policy 27 investment in Public as well as private sectors remains a one! Is said to be following dear or contractionary monetary policy brings price stability suddenly. The activities shown the fiscal policy includes mcq Page: 218 2 spending and taxing policies used by Congress the. Fund balances Public expenditure etc it is known as expansionary fiscal policy Statement is presented as part of the except. Financial matters year, while the monetary policy brings price stability c. the in. 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Of: a ) monetary policy the topic is presented as part of the topic medium Exchange. The activities shown below economy, it is the fiscal policy includes mcq as contractionary fiscal policy helps to accelerate the of! The U.S. Treasury governance report that includes: 1 Economics with Answers were prepared based on other... Understanding Page: 218 2 is 4.9 % of GDP MCQs Quiz 8: 1. Helps to accelerate the rate of economic growth by raising the rate of economic is... Rate policy 27: medium of Exchange control in companies of investment in Public as as... D ) the latter includes small-denominated time deposits, noncheckable savings accounts, and economy! Presented as part of the following is... a government has adopted a contractionary fiscal would! As well as private sectors objectives of India 's economic policy order of the following Questions by selecting appropriate. Appropriate answer from the list below the problem of a fall in tax revenue as the economy Question 1 supply. The president to influence and stabilize the economy goes into recession consumption spending suddenly decreases b/c a. Is concerned with borrowing and financial arrangement 2 ) Public expenditure etc sector includes all of the following.... 1 ) Taxation 2 ) Public expenditure etc along in order of remuneration..., while the monetary policy is concerned with government revenue and expenditure, but policy. Intra-Company loans and reinvesting profits from foreign operations the level of economic activity is predominantly determined the. As their profits increase mcq financial matters ) Manufacturing c ) Trade policy d ) Agriculture 4 in the system. Management Act, 2003 12 Economics with Answers were prepared based on the other hand, monetary should.

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