Question : Proportional taxes would help to reduce the autonomous expenditure multiplier because ________.

Option 1: taxes increase the MPC

Option 2: MPC does not have any role in it

Option 3: taxes and MPC become equal

Option 4: taxes reduce the MPC

Question : Which of the following statements is false?

Option 1: A decrease in interest rates will increase investment.

Option 2: An increase in investment can cause an increase in output.

Option 3: An increase in the savings in an economy can cause an increase in current output.

Option 4: A decrease in taxes can cause an increase in output.

Question : Which is not a measure undertaken by the government to check inflation?

Option 1: An increase in consumption

Option 2: An increase in production

Option 3: Reduction in deficit financing

Option 4: Taxation measures

Question : What is the basic difference in the aggregates at market price and factor cost?

Option 1: Depreciation

Option 2: Indirect taxes

Option 3: Net indirect taxes

Option 4: Direct taxes

Question : Which of these statements is true?

Option 1: At lower rates of interest, people will have a lower preference for liquidity.

Option 2: At higher rates of interest transactions, demand for money will be higher.

Option 3: At lower rates of interest, speculative demand for money will be higher.

Option 4: At higher rates of interest, the liquidity preference of people will increase.