National Fiscal and Monetary Policy - Lecture 4

?

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

  • Civil unrest.
  • Cheaper borrowing or tax cuts, leads to higher prices and wages.
  • Equal supply to demand.
  • Reduced costs of raw materials.
1 of 9

Other questions in this quiz

2. The Great Depression resulted in how many citizens jobless?

  • 13 Million
  • 20 Million
  • 15 Million
  • 14 Million

3. Which of the following are Economic Objectives?

  • Stable Prices, High Import Taxes, Low Exports, Low Employment, High taxation
  • Economic Growth, Stable Prices, Low Unemployment, Favourable Balance of trade, A low level of inflation.
  • Economic Growth, Stable Prices, Low Unemployment, Favourable Balance of trade, A high level of inflation.
  • Economic Growth, Stable Prices, Low Unemployment, Low Exports, A high level of inflation.

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

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

5. What is the definition of 'Fiscal Policy'?

  • Changing the level of government spending and tax.
  • Changing the level of money supply and interest rates.
  • Changing the level of government spending as interest rates.
  • Changing the level of money supply and tax.

Comments

No comments have yet been made

Similar Business Studies resources:

See all Business Studies resources »See all International Business Environment resources »