as I said above LOLYes, that is also correct. Really, people, don't argue over such a simple question. In an expansion, the government hands out less as there is no large need for government payments/benefits. In a contraction, it's the complete opposite. That was probably one of the easiest questions of the multiple choice.
Same answers that I put out earlier, the one's my teacher gave us. Oh well, didn't think she would be wrong with 17.Okay, here are the answers (I did the paper):
good luck everyone!
Before the tariff, when selling at $10, domestic supply is 100 and foreign is 400-100=300... The revenue is 300x10=3000Could someone explain why Q17 would be D? I'm at a loss here
Your reasoning is correct but the sale of govt securities decreases the money supply, because the RBA is selling the securities and collecting the money (taking it out of the money supply), increasing the cash rate.I assumed 16 was C, i thought in domestic market operations, the sale of government securities increases the money supply therefore decreasing the cash rate. Wouldn't you want an increase in the cash rate to combat inflationary pressures?
The sale of government securities creates limited money supply thus raising up the interest rate. This then leads to less consumer spending. I think you got it the wrong way around.I assumed 16 was C, i thought in domestic market operations, the sale of government securities increases the money supply therefore decreasing the cash rate. Wouldn't you want an increase in the cash rate to combat inflationary pressures?
why do i always ruin my marks with time management. I dont know how i did for multiple choice, because economics i think is one of the hardest to judge. BUT i know for certain, 55 minutes was not enough to write to essays, if i started with the essays i could've had a chance at band 5, now i'll be lucky with band 4. the shet thing is, i knew how to answer everything. question, stuffed me up as well. i think it was either b or c.Share your MC answers here