2.3 Economic performance

Which combination of changes is most likely to reduce inflationary pressures in an economy?

	Exchange rate of the domestic currency	Rate of income tax	Central bank policy interest rate
A	Depreciates	Increases	Decreases
B	Appreciates	Decreases	Decreases
C	Appreciates	Increases	Increases
D	Depreciates	Decreases	Increases

Row A

Row B

Row C

Row D

Which combination of changes is most likely to reduce inflationary pressures in an economy?

	Exchange rate of the domestic currency	Rate of income tax	Central bank policy interest rate
A	Depreciates	Increases	Decreases
B	Appreciates	Decreases	Decreases
C	Appreciates	Increases	Increases
D	Depreciates	Decreases	Increases

Row A

Row B

Row C

Row D

2.3 Economic performance Questions