Government Policy (Grade 12 NSC Matric Economics): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
What is the term for using government policy to manage business cycles?
What is the term for using government policy to manage business cycles?
Fine tuning
What are the two main categories of policy tools governments use?
What are the two main categories of policy tools governments use?
Monetary and fiscal policy
Which institution implements monetary policy in South Africa?
Which institution implements monetary policy in South Africa?
South African Reserve Bank (SARB)
In the quantity theory formula , what does represent?
In the quantity theory formula , what does represent?
Velocity of money
Using T_m = Delta D imes rac{1}{r_d}, what is if R1,000 is deposited with 5% reserve?
Using T_m = Delta D imes rac{1}{r_d}, what is if R1,000 is deposited with 5% reserve?
R20,000
What happens to money supply when SARB buys bonds from commercial banks?
What happens to money supply when SARB buys bonds from commercial banks?
Money supply increases
What does fiscal policy use to influence economic activity?
What does fiscal policy use to influence economic activity?
Taxation and public spending
What should government do when demand is low and unemployment is high?
What should government do when demand is low and unemployment is high?
Increase spending or decrease taxes
How should government respond to demand-pull inflation?
How should government respond to demand-pull inflation?
Cut spending or increase taxes
Why are combined monetary and fiscal policies most effective?
Why are combined monetary and fiscal policies most effective?
They create double multiplier effects