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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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@OpulentPhiladelphia

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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?

    <p>Lead to a decline in economic growth prospects</p> Signup and view all the answers

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

    <p>Pessimism about the economy</p> Signup and view all the answers

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

    <p>To cover higher costs of living</p> Signup and view all the answers

    How does an appreciation in the exchange rate affect imports?

    <p>Makes imports more expensive</p> Signup and view all the answers

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