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9 marksPublic Debt

CAPE Economics Unit 2 · 2012 · Paper 2 · Question 4(d)

Evaluate THREE possible negative consequences of government borrowing.

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Other parts of this question

  1. 4(a)(i)Define 'Fiscal policy'.[2 marks]
  2. 4(a)(ii)Define 'Budget surplus'.[2 marks]
  3. 4(a)(iii)Define 'Transfer payments'.[2 marks]
  4. 4(b)(i)Outline THREE limitations of Monetary policy.[3 marks]
  5. 4(b)(ii)Outline THREE limitations of Fiscal policy.[3 marks]
  6. 4(c)Identify FOUR sources from which governments can borrow large sums of money to finance their expenditure.[4 marks]

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