Question : A budget that includes a deficit is:

Option 1: Expansionary

Option 2: Contractionary

Option 3: Neutral

Option 4: None of the above

Question : A government budget that is balanced over the long term is called:

Option 1: A stable budget

Option 2: A dynamic budget
 

Option 3: A cyclically balanced budget

Option 4: None of the above

Question :  ___________ is a process where the central bank reduces the money supply in the economy.

Option 1: Contractionary monetary policy

Option 2: Expansionary monetary policy

Option 3: Quantitative easing

Option 4: Open market operations

Question : Which policy measures are generally used to reduce unemployment in an economy?

Option 1: Expansionary fiscal and monetary policies

Option 2: Contractionary fiscal and monetary policies

Option 3: Structural and supply-side policies

Option 4: None of the above

Question : The ideal liquid ratio is 

Option 1: 2:1

Option 2: 1:1

Option 3: 3:1

Option 4: None of the above