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Questions on monetary policy


Gender pay gap

80% of UK companies and public sectors organisations pay women less than men.

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Monetary policy

Short questions

  1. Why are official inflation targets not set at zero?

  2. Explain how changes in interest rates affect aggregate demand.

  3. What is the likely time lag between a change in interest rates and a change in the price level?

  4. Why is it generally considered beneficial for interest rates to be changed by a small amount at a time?

  5. What is the liquidity trap?

  6. What is Goodhart's Law?

  7. Do changes in interest rates primarily affect the supply of money or the demand for money? Explain your answer.


WTO rules

What exactly is the 'most favoured nation' rule?

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Model agencies collude to fix rates

Regulators find leading model agencies guilty of price fixing.

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Customs unions

Costs and benefits of customs unions.

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Savings ratio

Savings ratio falls to lowest level on record.

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