3 marksMonetary Theory and Policy
CAPE Economics Unit 2 · 2012 · Paper 2 · Question 4(b)(i)
Outline THREE limitations of Monetary policy.
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Practise this questionOther parts of this question
- 4(a)(i)Define 'Fiscal policy'.[2 marks]
- 4(a)(ii)Define 'Budget surplus'.[2 marks]
- 4(a)(iii)Define 'Transfer payments'.[2 marks]
- 4(b)(ii)Outline THREE limitations of Fiscal policy.[3 marks]
- 4(c)Identify FOUR sources from which governments can borrow large sums of money to finance their expenditure.[4 marks]
- 4(d)Evaluate THREE possible negative consequences of government borrowing.[9 marks]
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