help in homework

New User?

Fill This Form To Receive Instant Help

Help in Homework
trustpilot ratings
google ratings


Homework answers / question archive / Suppose the SARB decrease interest rates while oil prices is increasing

Suppose the SARB decrease interest rates while oil prices is increasing

Economics

Suppose the SARB decrease interest rates while oil prices is increasing. What would be the expected effect on real GDP and the price level? (4 marks) Price level Option 1 Uncertain 2 Increase Real GDP decreases uncertain decreases decreases 3 decreases 4 Increases A B Option 1 Option 2 Option 3 Option 4 C D

pur-new-sol

Purchase A New Answer

Custom new solution created by our subject matter experts

GET A QUOTE

Answer Preview

Option 4

With the decrease in Interest rate, the money supply increases which increases inflation and when the oil prices are increasing the cost of production increases which reduces the output.

Sitejabber (5.0)

BBC (5.0)

Trustpilot (4.9)

Google (5.0)