If an Economy's Inflation Rate Is Above Target, the Central

question 20

Multiple Choice

If an economy's inflation rate is above target, the central bank would be most likely to

• A)encourage banks to provide loans by lowering the repo rate.
• B)encourage banks to provide loans by raising the repo rate.
• C)restrict bank lending by lowering the repo rate.
• D)restrict bank lending by raising the repo rate.

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Definitions:

Industrial Relations

Is the process of negotiation and bargaining between employers and employees.

Business Associations

Represent the interests of organisations in an industry or region.

Occupational Health

A field of healthcare that focuses on the physical and mental well-being of employees in the workplace by preventing and addressing injuries and illnesses that may arise from work activities.

Profit Margins

The percentage of revenue remaining after deducting the cost of goods sold, symbolizing the financial health and profitability of a business.