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In the balance sheet of a commercial bank




I) In the balance sheet of a commercial bank, loans enter as;a - liabilities;b - net worth;c - assets;d - equal to liabilities minus net worth;II) Using fiscal policy to stabilize the economy is difficult because;a - potential income is known;b - the effects of policy changes is known with certainty;c - there are time lags involved in the use of fiscal policy;d - the size of the government debt doesn't matter;III) Potential income (or output) is that level of income that;a - the economy always produces;b - toward which the economy gravitates in the short-run;c - an economy is capable of producing without generating higher inflation;d - an economy would liek to achive through growth;IV) When a tax is progressive, the average tax rate;a - decreases with income;b - is constant with income;c - increases with income;d - first increases with income, then decreases with income;V)Which of the following equations is the correct equation for GDP (AD)?;a - GDP = C + I + G;b - GDP = C + I + G + X + M;c - GDP = C + I + G - X - M;d - GDP = C + I + G + X - M;(For each question - I, II, etc pls select one answer - thanks!)


Paper#26901 | Written in 18-Jul-2015

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