National Fiscal and Monetary Policy - Lecture 4

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1. Deflation can be due to:

  • High economy growth.
  • Increased competition, Technological Advancements, Supply outweighing Demand.
  • Increased competition, Technological Advancements, Demand outweighing Supply.
  • Hyperinflation.
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Other questions in this quiz

2. When was the Bank Of England Established?

  • 1964
  • 1967
  • 1965
  • 1963

3. Which of the following is an effect of lowering Interest rates?

  • Cheaper borrowing, meaning less incentive to save.
  • Expensive borrowing, meaning more incentive to save.
  • More expensive loans, meaning larger projects discouraged.
  • Improves external value of currency.

4. How many months does no economy growth have to surpass in order to be known as a Recession?

  • 4 months
  • 3 months
  • 1 month
  • 2 months

5. Which of the following is a cause of Inflation?

  • Civil unrest.
  • Reduced costs of raw materials.
  • Cheaper borrowing or tax cuts, leads to higher prices and wages.
  • Equal supply to demand.

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