题目

The currency in country X is the Krone while country Y uses the Euro. Country Y has recently experienced an increase in its exchange rate with Country X. Which of the following effects is likely to result in Country Y?

A

A stimulus to exports in Country Y

B

An increase in the costs of imports from Country X

C

Reducing demand for imports from Country X

D

A reduction in the rate of cost push inflation

Rationale: An increase in the exchange rate makes a country's exports more expensive to overseas buyers, and importscheaper: it therefore has the opposite of the first three effects. The lower cost of imports, however, is likely to reduce therate of domestic inflation.Ways in: You could group options B and C together (increased cost = reduce demand): since both cannot be the answer, and there is only one answer, neither of these options can be correct. This gets you quite a long way towards the solution …So if you don't know an answer, don't panic: logic can often help!

多做几道

If a government has a macro-economic policy objective of expanding the overall level of economic activity, which of the following measures would not be consistent with such an objective?

A

Increasing public expenditure

B

Lowering interest rates

C

Increasing taxation

____ taxes are collected by the Revenue authority from a business, which attempts to pass on the tax to consumers in the price of goods.Which word correctly completes this statement?

A

Progressive

B

Direct

C

Indirect

Which of the following is associated with a negative Public Sector Net Cash Requirement?

A

The government is running a budget deficit.

B

The government's expenditure exceeds its income

C

The government is running a budget surplus

D

Public Sector Debt Repayment (PSDR) is high.

Which of the following is not an element of fiscal policy?

A

Government spending

B

Government borrowing

C

Taxation

D

Exchange rates

For demographic purposes, which of the following is not a variable in the identification of social class?

A

Income level

B

Lifestyle

C

Occupation

D

Education