Multiple choice question Q.1.18 The implementation lag isfor monetary policy andfor 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 theeconomy?(1)To prevent excessive monopoly power by regulating monopolisticindustries;(2)To ensure that common property resources are not over exploited;(3)To provide public goods as the private sector is usually not willing toprovide these;The Independent Institute of Education (Pty) Ltd 202119; 20; 21(4)To regulate demand and supply in the macro economy.

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.