Business Studies Multiple Choice Question – 18 December 2022

The four option below show four different combinations of monetary and fiscal policy.

Assume there are no other changes.

Therefore, which combination is most likely to lead to an increase in sales for a company that builds houses?

Select ONE answer:

1. Decreasing interest rates and decreasing taxation
2. Decreasing interest rates and increasing taxation
3. Increasing interest rates and decreasing taxation
4. Increasing interest rates and increasing taxation

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

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 1

1. Correct
2. Not correct
3. Not correct
4. Not correct

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