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4491

If inflation is anticipated, people may

  • A. save more money
  • B. spend more money
  • C. give out more loans
  • D. spend less money
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4492

If the Central Bank increases its bank rate

  • A. many banks will shut down their operations
  • B. customers will borrow more from banks
  • C. the supply of money may be reduced
  • D. interest charges by banks will fall
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4493

Commercial banks are different from development banks in that the latter

  • A. lend on short-term basis
  • B. pay interest on current accounts only
  • C. are mostly joint-stock companies
  • D. do not deal in foreign currencies
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4494

Fiscal policy measures imply a change in

  • A. only taxation to control aggregate demand
  • B. bank rate to infulence lending
  • C. only government expenditure to regulate an economy
  • D. government revenue and expenditure to regulate an economy
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4495

If demand is perfectly inelastic, a tax imposed

  • A. is borne only by the producer
  • B. is borne only by the consumer
  • C. will have greater impact on the seller
  • D. will have no impact on the buyer
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