Annual Budget

A government budget deficit lowers interest rates and causes investment spending to rise

An increase in marginal tax rates lower production

A government budget deficit raises interest rates and causes investment spending to fall

A government budget deficit raises American exports and lowers American imports

Tax bands do not increase with inflation

Tax rates move inversely with inflation

Government spending falls to reduce aggregate demand

Tax bands increase with inflation

Bicycles costing Rs. 500 will be sold for Rs. 1,250

Bicycles costing Rs. 500 will be sold for Rs. 833,33

Bicycles costing Rs. 500 will be sold for Rs. 700

Bicycles costing Rs. 500 will be sold for Rs. 800

Larger than GNP

Approximately equal to GNP

Small than GNP

Smaller than our exports

Investment

Savings

Import spending

Taxation

400 units

566 units

4000 units

283 units

Reduce interest rates

Sell its own currency

Buy its own currency with foreign reserves

Increase its own spending

A substitute of management.

An aid to management.

A post-mortem.

None of these

Increase the budget surplus

Increase the balance of payments deficit

Reduce interest rates

Reduce government expenditure