(A) A lower interest rate but the same quantity of money

(B)A higher interest rate but the same quantity of money

(C)A higher quantity of money but lower interest rates

(D)A higher quantity of money but the same interest rate

(A) Tax bands do not increase with inflation

(B)Tax rates move inversely with inflation

(C)Government spending falls to reduce aggregate demand

(D)Tax bands increase with inflation

(A) The velocity of circulation decreases

(B)The number of transactions decreases

(C)There is deflation

(D)The velocity of circulation and the number of transactions is constant

(A) The amount of tax paid increases with income

(B)The average rate of tax decreases with more income

(C)The average rate of tax falls as income increases

(D)The average rate of tax is constant as income increases

(A) People lack information

(B) People do not want to work

(C)People do not have the right skills to accept a new job

(D) People cannot afford to move location

(A) Increase interest rates

(B)Encourage savings

(C)Cut taxes

(D)Reduce government spending

(A) An idle balance

(B)An active balance

(C)Directly related to interest rates

(D)Inversely related to income

(A) Individuals hold money just in case an emergency happens

(B)Individuals hold money to buy things

(C)Individuals hold money rather than other assets because they are worried about the price of the other assets falling

(D)Individuals hold money to shop

(A) Lower interest rate

(B) Increased lending by the banks

(C)An increase in corporation tax

(D)An increase in discretionary government spending

(A) Reduces spending

(B)Buys and sells bonds and securities

(C)Increases taxation

(D)Increases the exchange rate