Economics Readings Site By Colin Ong

This blog has been created to provide an area for economics students to read about how economics impacts daily life. It is especially useful for students to understand the application of macroeconomics as communicated through the media and governmental websites.

This online resource has been set up for educational purposes.All rights are reserved by the various websites.

For further clarification, please email colin@mrmc.com.sg

MCQ 14

clipped from www.tutor2u.net

A decision by the government to introduce an expansionary fiscal policy would be less likely to succeed in reducing unemployment if a country had

  1. A high marginal propensity to import
  2. A high level of cyclical unemployment and spare capacity
  3. A fixed exchange rate
  4. A low level of business and consumer confidence
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