Q.1.18 The implementation lag is for monetary policy and , for fiscal policy. (1) Extremely short; long; (2) Long; extremely short; (3) Long; long; (4) Long; short. Q.1.19 Creditors and debtors tend to lose during an inflationary period since: (1) The nominal interest rate on their credit tends to fall; (2) The real value of their credit tends to decrease; (3) Debtors pay more in real terms; (4) The real interest rate on their credit remains constant.

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
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Chapter1: Making Economics Decisions
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Q.1.18 The implementation lag is
for monetary policy and
for fiscal policy.
(1)
Extremely short; long;
(2)
Long; extremely short;
(3)
Long; long;
(4)
Long; short.
Q.1.19 Creditors and debtors tend to lose during an inflationary period since:
(1)
The nominal interest rate on their credit tends to fall;
(2)
The real value of their credit tends to decrease;
(3)
Debtors pay more in real terms;
(4)
The real interest rate on their credit remains constant.
Transcribed Image Text:Q.1.18 The implementation lag is for monetary policy and for fiscal policy. (1) Extremely short; long; (2) Long; extremely short; (3) Long; long; (4) Long; short. Q.1.19 Creditors and debtors tend to lose during an inflationary period since: (1) The nominal interest rate on their credit tends to fall; (2) The real value of their credit tends to decrease; (3) Debtors pay more in real terms; (4) The real interest rate on their credit remains constant.
Q.1.17 Which of the following is NOT a justification for government involvement in the
economy?
(1)
To prevent excessive monopoly power by regulating monopolistic
industries;
(2)
To ensure that common property resources are not over exploited;
(3)
To provide public goods as the private sector is usually not willing to
provide these;
The Independent Institute of Education (Pty) Ltd 2021
19; 20; 21
(4)
To regulate demand and supply in the macro economy.
Transcribed Image Text:Q.1.17 Which of the following is NOT a justification for government involvement in the economy? (1) To prevent excessive monopoly power by regulating monopolistic industries; (2) To ensure that common property resources are not over exploited; (3) To provide public goods as the private sector is usually not willing to provide these; The Independent Institute of Education (Pty) Ltd 2021 19; 20; 21 (4) To regulate demand and supply in the macro economy.
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