Economics MCQs

I. Government reducing budget deficts
Ii. limiting credit creation and liberalizing trade
Iii. achieving market-clearing price
Iv. restraining public sector employment and wage rates

A. Lower taxes on the returns to saving, provide investment tax credits and lower the deficit
B. Increase tax on the returns to saving provide investment tax credits and increase the deficit
C. Increase tax on the returns to saving provide investment tax credits and lower the deficit
D. Lower taxes on the returns to saving provide investment tax credits and increase the deficit

A. Raise the real interest rate and decrease the quantity of loanable funds demanded for investment
B. Lower the real interest rate and increase the quantity of loaable funds demanded for investment
C. Raise the real interest rate and increase the quantity of loandable funds demanded for investment
D. Lower the real interest rate and decrease the quantity of loanable funds demanded for investment

A. An increase in public saving
B. A decrease in private saving
C. None of these answers
D. A decrease in public savings

A. Saving is unchanged
B. There is an increased in saving and the economy should grow more quickly
C. There is a decrease in saving and the economy should grow more slowly
D. There is not enough information to determine what will happen to saving

A. None of these answers
B. Investment + consumption expenditures
C. Private saving + public saving
D. Gdp government purchases

A. There is a budget deficit
B. None of these answers
C. There is a budget surplus
D. Private saving is positive

A. A reduction in the budget deficit
B. An increase in the budget deficit
C. An investment tax credit
D. None of the above

A. Intermediation
B. Equity finance
C. Crowding out
D. The investment fund effect

A. The real interest rate should fall
B. The real interest rate should rise
C. The impact on the real interest rate is indeterminate
D. The real interest rate should not change