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Natural Rate of Unemployment and the 'Gig' Economy Quiz

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Natural Rate of Unemployment and the 'Gig' Economy Quiz

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Questions and Answers

What is a potential effect of higher interest rates on savers?

Increase in saving

Decrease in spending

Increase in spending (correct)

Decrease in saving

How might higher interest rates influence the exchange rate?

Increase imports

No effect on the exchange rate

Encourage capital inflows (correct)

Lead to depreciation

What could be a consequence of lower demand in the economy?

Decrease in unemployment

Higher government spending

Increase in government tax income

Higher unemployment (correct)

How might low investment impact future economic growth?

Lead to a decline in economic growth prospects Signup and view all the answers

What could result from the corporate sector losing confidence in the economy?

Pessimism about the economy Signup and view all the answers

Why might demands for higher wages increase in an environment of rising mortgage payments?

To cover higher costs of living Signup and view all the answers

How does an appreciation in the exchange rate affect imports?

Makes imports more expensive Signup and view all the answers

Natural Rate of Unemployment and the 'Gig' Economy Quiz

Choose a study mode

Podcast

Questions and Answers

What is a potential effect of higher interest rates on savers?

How might higher interest rates influence the exchange rate?

What could be a consequence of lower demand in the economy?

How might low investment impact future economic growth?

What could result from the corporate sector losing confidence in the economy?

Why might demands for higher wages increase in an environment of rising mortgage payments?

How does an appreciation in the exchange rate affect imports?

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