“c04AggregateDemandPoliciesAndDomesticEconomicStability_PrintPDF” — 2022/6/7 — 8:31 — page 375 — #89
Question 9 Source: VCE 2019 Economics Exam, Section A, Q12 © VCAA
A. B. C. D.
A contractionary stance in monetary policy by the Reserve Bank of Australia (RBA) could be achieved by selling Commonwealth Government Securities to increase cash in the overnight money market. buying Commonwealth Government Securities to increase cash in the overnight money market. selling Commonwealth Government Securities to decrease cash in the overnight money market. buying Commonwealth Government Securities to decrease cash in the overnight money market.
FS
MC
Question 10
A. B. C. D.
Expansionary monetary policy is most likely to cause
PR O
MC
O
Source: VCE 2018 Economics Exam, Section A, Q2 © VCAA
a decrease in welfare payments. an appreciation of the Australian dollar. a reduction in the rate of economic growth. an increase in the size of the budget deficit
PA
company tax cuts personal income tax cuts increasing the rate of the goods and services tax (GST) increasing the tax-free threshold for personal income tax
D
A. B. C. D.
Which one of the following would reduce the size of the Australian Government’s budget deficit?
Question 12
TE
MC
G
Source: VCE 2018 Economics Exam, Section A, Q9 © VCAA
E
Question 11
CO RR EC
Source: VCE 2018 Economics Exam, Section A, Q12 © VCAA MC When the economy is experiencing low rates of inflation and low rates of economic and employment growth, the Reserve Bank of Australia will be likely to
A. B. C. D.
sell government securities in order to increase the cash rate. sell government securities in order to decrease the cash rate. purchase government securities in order to increase the cash rate. purchase government securities in order to decrease the cash rate.
Question 13
N
Source: VCE 2018 Economics Exam, Section A, Q13 © VCAA
U
MC Imagine the Australian Government’s budget is in surplus. If the rate of economic growth were to slow, this may ultimately result in a
A. B. C. D.
smaller surplus budget, as receipts rise and outlays fall. budget deficit, as receipts rise and outlays fall. larger surplus budget, as receipts rise and outlays fall. smaller surplus budget, as receipts fall and outlays rise.
TOPIC 4 Aggregate demand policies and domestic economic stability
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