Economics Multiple Choice Question – 22 April 2019

Which of the following is an example of fiscal policy?

Select ONE answer:

1. A change in the exchange rate
2. A change in the level of government spending
3. A change in the rate of interest
4. A change in the money supply

Show your workings to arrive at your answer, and explain and justify your reasons:……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Economics KS5 classes.

The answer is 2

1. A monetary policy measure
2. Correct: Government spending is one of the two fiscal policy measures.
3. A monetary policy measure.
4. A monetary policy measure.

 

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