Subject - Economics:

Macroeconomics

MCQ - 39-4049

Question:

Which of the following lessens the impact of expansionary fiscal policy?

An increase in the marginal propensity to consume.
Lower interest rates that cause a decrease in net exports.
Higher interest rates that cause an increase in net exports.
Lower interest rates that cause a decrease in net exports.
Falling price levels.

Correct Answer: D

Explanation:

Expansionary fiscal policy can be weakened if government borrowing drives up interest rates and diminishes private investment.

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269 MCQ for effective preparation of the test of Macroeconomics of Economics section.

Read the MCQ statement: Which of the following lessens the impact of expansionary fiscal policy? , keenly and apply the method you have learn through the video lessons for Macroeconomics to give the answer. Record your answer and check its correct answer and video explanation for MCQ No. 39-4049.

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Solve the question for MCQ No. and decide which option (A through D/E) is the best choice to answer the MCQ, then click/tap the blue button to view the correct answer and it explanation.

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