Stocks & Surplus Economics Mcqs

1.

An increase in the budget surplus ?

A. Shifts the supply of loanable funds to the left and increase the real interest rate

B. Shift the supply of loanable funds to the right and reduces the real interest rate.

C. Shifts the demand for loanable funds to the right and increases the real interest rate.

D. Shifts the demand for loanable funds to the left and reduces the real interest rate

Answer & Solution Discuss in Board

2.

If Pakistani citizens become less concerned with the future and save less at each real interest rate ?

A. Real interest rates rise and investment falls

B. Real interest rates rise and investment rises

C. Real interest rates fall and investment rises

D. Real interest rates fall and investment falls

Answer & Solution Discuss in Board

3.

An increase in the budget deficit is ?

A. an increase in public saving

B. a decrease in private saving

C. None of these answers

D. a decrease in public savings

Answer & Solution Discuss in Board

4.

An increase in the budget deficit will ?

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

Answer & Solution Discuss in Board

5.

Which of the following sets of government policies is the most growth oriented ?

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

Answer & Solution Discuss in Board

6.

Investment is ?

A. The purchase of goods and services

B. The purchase of capital equipment and structures

C. When we place our saving in the bank

D. The purchase of stocks and bonds

Answer & Solution Discuss in Board

7.

If the public consumes Rs 100 billion less and the government purchases Rs100 billion more (other things unchanging), Which of the following statement is true ?

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

Answer & Solution Discuss in Board

8.

If government spending exceeds tax collections?

A. there is a budget deficit

B. None of these answers

C. There is a budget surplus

D. private saving is positive

Answer & Solution Discuss in Board

9.

National Saving (or just saving) is equal to ?

A. none of these answers

B. investment + consumption expenditures

C. private saving + public saving

D. GDP government purchases

Answer & Solution Discuss in Board

10.

Credit risk refers to a bond’s ?

A. Probability of default

B. Price-earnings ratio

C. dividend

D. tax treatment

Answer & Solution Discuss in Board

Practice MCQ Questions and answers on Stocks & Surplus Economics Mcqs

1. An increase in the budget surplus ?

Answer & Solution

2. If Pakistani citizens become less concerned with the future and save less at each real interest rate ?

Answer & Solution

3. An increase in the budget deficit is ?

Answer & Solution

4. An increase in the budget deficit will ?

Answer & Solution

5. Which of the following sets of government policies is the most growth oriented ?

Answer & Solution

6. Investment is ?

Answer & Solution

7. If the public consumes Rs 100 billion less and the government purchases Rs100 billion more (other things unchanging), Which of the following statement is true ?

Answer & Solution

8. If government spending exceeds tax collections?

Answer & Solution

9. National Saving (or just saving) is equal to ?

Answer & Solution

10. Credit risk refers to a bond’s ?

Answer & Solution

Read More Section(Economics Mcqs)

1.

An increase in the budget surplus ?

2.

If Pakistani citizens become less concerned with the future and save less at each real interest rate ?

3.

An increase in the budget deficit is ?

4.

An increase in the budget deficit will ?

5.

Which of the following sets of government policies is the most growth oriented ?

6.

Investment is ?

7.

If the public consumes Rs 100 billion less and the government purchases Rs100 billion more (other things unchanging), Which of the following statement is true ?

8.

If government spending exceeds tax collections?

9.

National Saving (or just saving) is equal to ?

10.

Credit risk refers to a bond’s ?