4. Question 4 Which of the following statements about government deficits is correct? 1 point Deficits should occur during recessionary gaps and surpluses during inflationary gaps Governments usually…
3. Question 3 Which country of the following has the highest government debt in absolute terms and in national currency? 1 point The United Kingdom The United States…
7. Question 7 It is probably fair to say that 1 point It is difficult for politicians who carry out a restrictive fiscal policy to win elections If…
4. Question 4 Which of the following statements is correct? 1 point Typically, developing countries have foreign debt and developed countries do not Only Greece and the United…
2. Question 2 Which of the following institutions may buy government bonds in BOTH the primary and the secondary market, in most developed countries? 1 point large financial institutions…
1. Question 1 “The United States has the world´s largest fiscal deficit in total US dollars.” Could anything be changed in this statement to correctly evaluate whether the United States…
7. Question 7 If we observe that the economy of a developed country has a deficit during a recessionary gap, of which of the following conclusions can we be CERTAIN?…
4. Question 4 The correct formula for the multiplier is: (where ‘∆’ stands for change) 1 point 1/(1-MPS) ∆C/∆Y ∆S/∆Y 1/(1-MPC)
2. Question 2 Which of the following measures would have NO impact on aggregate demand? 1 point Raising consumption taxes Raising interest rates Raising government spending …
7. Question 7 If you were asked to choose a pair of effects that would have the greatest contractive/restrictive effect on the economy, which would you choose? 1 point …
