* not completed

. A reflationary (expansionist) fiscal policy could include:

Lower interest rates correct incorrect

Increased lending by the banks correct incorrect

An increase in corporation tax correct incorrect

An increase in discretionary government spending correct incorrect

* not completed

. If the economy grows, the government's budget position should automatically:

Worsen correct incorrect

Improve correct incorrect

Stay the same correct incorrect

Decrease with inflation correct incorrect

* not completed

. Fiscal drag occurs when:

Tax bands do not increase with inflation correct incorrect

Tax rates move inversely with inflation correct incorrect

Government spending falls to reduce aggregate demand correct incorrect

Tax bands increase with inflation correct incorrect

* not completed

. If the marginal rate of tax is 40% and consumers' income increases from £10,000 to £12,000:

The amount of tax paid will increase by £4,800 correct incorrect

The amount of tax paid will increase by £4,000 correct incorrect

The amount of tax paid will increase by £800 correct incorrect

The total tax paid will be £4,800 correct incorrect

* not completed

. Imagine there is no tax on income up to £10,000; after that, there is a tax of 50%. What is the average tax rate on an income of £20,000?

£5,000 correct incorrect

20% correct incorrect

25% correct incorrect

£10,000 correct incorrect

* not completed

. The marginal rate of tax paid is:

The total tax paid / total income correct incorrect

Total income / total tax paid correct incorrect

Change in the tax paid / change in income correct incorrect

Change in income / change in tax paid correct incorrect

* not completed

. In a regressive tax system:

The amount of tax paid increases with income correct incorrect

The average rate of tax decreases with less income correct incorrect

The average rate of tax falls as income increases correct incorrect

The average rate of tax is constant as income increases correct incorrect

* not completed

. The Public Sector Net Borrowing is:

A measure of the government's trade position correct incorrect

A measure of the government's budget position correct incorrect

A measure of the government's total debt correct incorrect

A measure of the government's monetary stance correct incorrect

* not completed

. A government might use tax to:

Discourage consumption of goods with positive externalities correct incorrect

Discourage consumption of public goods correct incorrect

Discourage consumption of merit goods correct incorrect

Discourage consumption of goods with negative externalities correct incorrect

* not completed

. A budget deficit is likely to:

Boost aggregate demand correct incorrect

Lead to less import spending correct incorrect

Lead to falling prices correct incorrect

Leads to more unemployment correct incorrect