* not completed

. A budget deficit means:

Government spending equals government revenue correct incorrect

Government spending is falling correct incorrect

Government spending is less than government revenue correct incorrect

Government spending is more than government revenue correct incorrect

* not completed

. The marginal propensity to consume measures:

The average spending of consumers correct incorrect

The total spending of consumers correct incorrect

The extra spending out of an extra pound correct incorrect

Spending relative to savings correct incorrect

* not completed

. The multiplier will be bigger if:

The marginal propensity to consume is higher correct incorrect

The marginal propensity to consume is lower correct incorrect

The marginal propensity to save is higher correct incorrect

There is more free trade correct incorrect

* not completed

. Quantitative easing is:

Part of fiscal policy correct incorrect

Part of monetary policy correct incorrect

Part of Government revenue correct incorrect

Part of direct taxation revenue correct incorrect

* not completed

. All things being equal an increase in the exchange rate…

Increases the price of exports overseas and increases the price of imports into the UK correct incorrect

increases the price of exports overseas and decreases the price of imports into the UK correct incorrect

decreases the price of exports overseas and decreases the price of imports into the UK correct incorrect

decreases the price of exports overseas and increases the price of imports into the UK correct incorrect

* not completed

. To prevent the exchange rate from falling a government might:

Sell its currency correct incorrect

Buy its currency correct incorrect

Lower the interest rate correct incorrect

Reduce demand for its currency correct incorrect

* not completed

. To reduce unemployment the government might:

Decrease government spending correct incorrect

Increase income tax correct incorrect

Increase interest rates correct incorrect

Invest in training correct incorrect

* not completed

. To increase aggregate demand the government might:

Decrease its deficit correct incorrect

Use quantitative easing correct incorrect

Increase direct taxation correct incorrect

Increase interest rates correct incorrect

* not completed

. The multiplier shows:

How an increase in spending in the economy leads to lower inflation correct incorrect

How an increase in spending in the economy leads to a higher exchange rate correct incorrect

How an increase in spending in the economy leads to a bigger increase in national income correct incorrect

How an increase in national income in the economy leads to higher inflation correct incorrect