Money Market & Government Borrowing
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Questions and Answers

What has been the trend of inflation since 1992?

  • It has been fairly low (correct)
  • It has been high
  • It has been unpredictable
  • It has been moderate
  • What happens to the unemployment rate during a recession?

  • It decreases
  • It remains the same
  • It increases (correct)
  • It becomes unpredictable
  • What is the term for a prolonged period of high inflation?

  • Hyperinflation (correct)
  • Stagflation
  • Deflation
  • Recession
  • What is the term for a period of low economic activity?

    <p>Slump</p> Signup and view all the answers

    What is the term for a situation where inflation and unemployment are high?

    <p>Stagflation</p> Signup and view all the answers

    What type of bonds are issued by the government to finance its activities?

    <p>Treasury bonds</p> Signup and view all the answers

    What is the term for the study of individual economic units such as households and firms?

    <p>Microeconomics</p> Signup and view all the answers

    What is the term for the study of the economy as a whole?

    <p>Macroeconomics</p> Signup and view all the answers

    What is the term for the management of a country's economy by the government?

    <p>Fiscal policy</p> Signup and view all the answers

    What is the term for the actions of a central bank to control the money supply?

    <p>Monetary policy</p> Signup and view all the answers

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