AS Econ - Macro - Monetary and fiscal policies
Quiz by Mark Seccombe
EdExcel (A-Level)
Economics A
English National Curriculum
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9 questions
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- Q1When investment increases as a result of an increase in GDP, this is an example of:Government failureThe acceleratorThe multiplierMonetary policy45s2.4.4
- Q2Which one of the following is not a macro-economic objective?To maintain full employmentTo ensure price stabilityTo ensure high levels of growthTo reduce the tax burden45s2.6.1
- Q3Which one of the following headlines indicates the use of monetary policy?"Big reduction in government borrowing announced in the budget.""Government declares its determination to halt the fall in the value of money.""Misery for homeowners as interest rates are raised.""More money in everyone's pockets as taxes are lowered."45s2.6.2a
- Q4In the short run, a fall in the budget deficit is most likely to increaseUnemploymentThe quantity of importsInterest ratesThe rate of inflation45s2.2.4
- Q5Which one of the following is a correct statement?The Bank of England uses fiscal policy to control the exchange rateFiscal policy is used only to affect the demand of the economyThe Bank of England is responsible for monetary and fiscal policyFiscal policy can be used to affect the trade balance and the rate of inflation45s2.6.2b
- Q6One of the main functions of supply-side policies in the UK economy is toReduce the size of the government's national debtCause the rate of growth of aggregate supply to exceed the rate of growth of ADLower the long-run trend rate of growth of the economyCreates incentives designed to improve economic performance45s2.6.3
- Q7All other things being equal, a fall in the value of the pound against the euro would be likely to lead toA fall in raw material prices of EU imports coming into the UKA worsening of the UK's trade deficit with the EUA rise in the euro price of UK exportsAn increase in aggregate demand45s2.2.5
- Q8Which one of the following statements relating to monetary policy is correct?A cut in interest rates always increases inflationInterest rate changes have no effect on aggregate supplyAn increase in interest rates will raise the level of business investmentA rise in interest rates may cause an appreciation of the exchange rate45s4.1.8b
- Q9Which tax is most likely to be regressive?Sales taxAn inheritance taxA property taxIncome tax45s2.6.2b