Answer to Question #272644 in Microeconomics for Azwifaneli

Question

Question 2 /20/

a. Mention any 5 concepts used interchangeably with:

i. Lending rate. (5)

ii. Strict monetary policy (5)

iii. Accommodative monetary policy (5)

b. Mention the types of inequality that were seen most during the period of hard lockdown in South Africa. (5)

Answer 1

a.

i. Interest rate

Annual percentage rate

Prime rate

Interbank rates

Base rate

Loan rate

ii. Tight monetary policy

Contractionary monetary policy

Slowing economic growth

High interest rates

Inflation reduction

iii. loose credit

Easy monetary policy

Boosting economic growth

Increasing money supply

Reduced credit rate

b. Income inequality

Health inequality

Policy inequality

Political inequality

Social inequality