Podcast
Questions and Answers
Which of the following could influence liquidity preference
Which of the following could influence liquidity preference
- Transaction motives
- a + b are correct (correct)
- None of the above
- Precautionary motives
You are a member of the Treasury, and you are concerned that the inflation rate is too high. Which of the following policies should you recommend?
You are a member of the Treasury, and you are concerned that the inflation rate is too high. Which of the following policies should you recommend?
- An increase in government spending
- A decrease in the money supply (correct)
- A decrease in income tax rates
- An increase in the money supply
Which of the following instruments is not used by the Bank of England to change the money supply?
Which of the following instruments is not used by the Bank of England to change the money supply?
- Bank rate
- The liquidity ratio
- Open market operation
- The tax system (correct)
If the economy was booming, we would expect
If the economy was booming, we would expect
Which of the following is not an automatic stabiliser?
Which of the following is not an automatic stabiliser?
If central government's spending exceeded its tax receipt in 2022, the country would have a:
If central government's spending exceeded its tax receipt in 2022, the country would have a:
Discretionary fiscal policies refer to:
Discretionary fiscal policies refer to:
Which of the following determines the competitive advantage of a nation?
Which of the following determines the competitive advantage of a nation?
A higher domestic price level will result in
A higher domestic price level will result in
The UK and Tanzania have the option to produce wheat or rice but not both.
Suppose that the UK can produce 60 units of Wheat, or 20 units of rice and Tanzania can produce 30 units of wheat or 60 units of rice. This means that
The UK and Tanzania have the option to produce wheat or rice but not both. Suppose that the UK can produce 60 units of Wheat, or 20 units of rice and Tanzania can produce 30 units of wheat or 60 units of rice. This means that
