Question 9
Question 9 of 30
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Older MCQs might not have the typical A, B, C, D choices. They have choices 1, 2, 3, and a combination of them is the answer. Below is the key that maps such combinations to the answer.
A 1, 2 and 3 are correct
B 1 and 2 only are correct
C 2 and 3 only are correct
D 1 only is correct
Topics Tested
4. Government and the mac...
4.8. Inflation and deflation

Definition of inflation and deflation. Measurement of inflation and deflation using the Consumer Prices Index (CPI). Causes of inflation: demand-pull and cost-push. Causes of deflation: demand-side and supply-side. The consequences of inflation and deflation for consumers, workers, savers, lenders, firms and the economy as a whole. The range of policies available to control inflation and deflation and how effective they might be.

4. Government and the mac...
4.4. Monetary policy

Changes in interest rates, money supply and foreign exchange rates.

3. Microeconomic decision...
3.2. Households

The influences on spending, saving and borrowing including income, the rate of interest and confidence – between different households and over time.