Economics (1 Viewer)

[Haat123]

Can someone whos done eco in the past help me

In our half yearly exam we had a question : Which of the following is not an economic reason for protection
A) Infant industry
B) Domestic structural employment
C) Defence/ Self sufficiency
D) Domestic production

I put option D as its not a syllabus given reason, but some ppl were saying its C as defence is not an ECONOMIC but rather a political eason
Am I wrong or are they just overdoing it?

 

[Haat123]

And also

There was a question saying how does exchange rate movements influence interest rates
Such a backwards question
I talked about rapid appreciation causes RBA intervention through manipulation of cash rate...
Is that fine or did I do this wrong too?

 

[Haat123]

D is right.

your response was accurate but for that question, you could also think about how changes in the exchange rate affect inflation (etc) and how the rba uses monetary policy for inflation targeting

Yes bro I was thinking that after, cause it was a 4 mark asking for trade prices and interest rates so it probably wanted an inflation refrence. Hopefully they still give 4