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Free CFA Economics Practice Questions & Answers

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Question 1561

Automatic stabilizers reduce output fluctuations because:

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Question 1562

Discretionary fiscal policy refers to:

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Question 1563

A balanced budget occurs when:

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Question 1564

Government deficits represent:

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Question 1565

Government debt represents:

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Question 1566

Government deficits are financed by:

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Question 1567

A large stock of government debt may be owned by:

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Question 1568

The real value of government debt falls when:

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Question 1569

The debt-to-GDP ratio may fall even if debt stays constant when:

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Question 1570

Rising net interest payments can cause:

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Question 1571

One argument against worrying about national debt is:

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Question 1572

Countries like Japan and South Korea have high internal ownership of debt, meaning:

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Question 1573

A second argument against worrying about debt is that borrowed money may:

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Question 1574

A third argument against worrying about debt is that:

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Question 1575

Ricardian equivalence suggests that deficits:

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Question 1576

Another argument against worrying about debt is that if unemployment exists:

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Question 1577

Fiscal policy can influence:

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Question 1578

Expansionary fiscal policy increases aggregate demand by:

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Question 1579

Contractionary fiscal policy reduces aggregate demand by:

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Question 1580

Fiscal policy is especially powerful when:

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Question 1581

Monetarists argue fiscal policy effects are temporary because:

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Question 1582

A budget deficit automatically rises in recession because:

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Question 1583

A budget surplus automatically rises in a boom because:

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Question 1584

Automatic stabilizers are beneficial because:

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Question 1585

Discretionary fiscal policy is limited by:

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Question 1586

National debt concerns depend partly on:

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Question 1587

A key argument for being concerned about high national debt is that it may:

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Question 1588

Higher marginal tax rates due to high debt may:

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Question 1589

If markets lose confidence in a government, the central bank may:

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Question 1590

Printing money to finance deficits may lead to:

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Free CFA Economics Practice Questions & Answers

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Before you go, can we ask you one thing?

Thank you