Author: stuart001uk2014

Monetary policy does not usually work immediately.

Which time lag is likely to be the LEAST concern to a government whose priority is a rapid domestic impact?

Select ONE answer:

1. the time it takes for policymakers to recognise the cause of a problem
2. the time it takes for the economy to respond to the introduction of the policy
3. the time it takes for the foreign exchange rate to respond to the effect of the policy
4. the time it takes to put the chosen policy measure into place

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

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

This multiple-choice question is suitable for Economics KS4 and KS5 classes.

The answer is 3

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

This work is licensed under a Creative Commons Attribution 4.0 International License.

A country’s balance of payments current account is in deficit.

How can this be restored to equilibrium, assuming the Marshall-Lerner condition holds?

Select ONE answer:

1. increase the exchange rate
2. reduce income tax
3. reduce primary income
4. subsidise domestic producers

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

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

This multiple-choice question is suitable for Economics KS4 and KS5 classes.

The answer is 4

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

This work is licensed under a Creative Commons Attribution 4.0 International License.

An increase in what choice below will shift the aggregate demand curve in an economy to the right?

Select ONE answer:

1. budget deficit
2. consumer savings
3. general price level
4. interest rate

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

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

This multiple-choice question is suitable for Economics KS4 and KS5 classes.

The answer is 1

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

This work is licensed under a Creative Commons Attribution 4.0 International License.

What is likely to be the least effective store of value during a period of rapid inflation?

Select ONE answer:

1. antique furniture
2. fixed interest government securities
3. houses
4. shares of industrial companies

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

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

This multiple-choice question is suitable for Economics KS4 and KS5 classes.

The answer is 2

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

This work is licensed under a Creative Commons Attribution 4.0 International License.

Ruritania’s aggregate demand decreased over the last year.

What might have been the cause of this?

Select ONE answer:

1. a reduction in consumer saving
2. a reduction in direct taxes
3. a reduction in imports
4. a reduction in investment

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

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

This multiple-choice question is suitable for Economics KS4 and KS5 classes.

The answer is 4

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

This work is licensed under a Creative Commons Attribution 4.0 International License.