Fiscal Policy

That policy of the government which works through the budget is known as __________ policy.

• monetary
• fiscal
• income
• revenue

If government's expenditure increases by Rs. 100 and if the MPC is 4/5 then national income will increases by Rs. _______.

• 100
• 400
• 500
• 125

If government tax revenue increases by Rs. 100 and if the MPC is 4/5, then national income decreases by Rs. _____________.

• 100
• 400
• 500
• 125

If government tax revenue & expenditure both increases by Rs. 100 and if the MPC is 4/5, then national income increases by Rs. _____________.

• 100
• 400
• 500
• 125

If the marginal propensity to consume (MPC) is b, the government expenditure multiplier will be :

• 1/b
• 1 / 1 - b
• b / 1 - b
• 1 - 1/b

If the MPC is b, tax revenue multiplier will be :

• 1/b
• -1 / 1-b
• - b / 1 -b
• 1 / 1 - 1/b

The value of balanced budget multiplier is :

• 1
• > 1
• <1
• none of these

The objective of anti-inflationary fiscal policy is to be reduce _____________.

• aggregate demand
• rate of interest
• supply of money
• national income

If the budget total revenue is less than total expenditure it is known as ____________ budget.

• surplus
• deficit
• balanced
• capital

Which one of the following is not anti-inflationary?

• Increase in tax revenue
• Decrese in government expenditure
• repayment of public debt
• Compulsory saving