Money Moves
BOT has decreased its interest rates to encourage more borrowing! What tool can we term this as?
What is monetary policy?
Who is responsible for setting the interest rates and controlling money supply in Tanzania?
What is Bank Of Tanzania (BOT)?
Some of the after effects of the government increasing spending on public health care, targeting the population specifically.
What is long term increased income from charging citizens these services?
OR
What is short term decreased in unemployment rates?
Main tools to manage economy.
What is Government and Central Bank?
(BOT, TRA, and Ministry of Finance will also be accepted)
There's too many unemployed people, the government launches a new public works program to build and maintain parks to boost employment. What tool is this?
What is fiscal policy?
This government body can advise or work with TRA and/or BOT at managing the economic policies.
What is ministry of finance?
There is a pandemic, and in an effort to curb public panic the government has increased borrowing rates and decreased securities. How would this effect the economy overall?
What is people will likely decrease spending reducing the degree of inflation?
In very severe scenarios however, these actions might not affect the public in the short term as they will proceed to panic spend on necessities like food or relocation.
Depends with how you can argue this!
What body (a terminology and NOT governing body) can maintain things like jobs, circulation of money and economic growth?
What is economic policy?
What scenario would BOT increase its borrowing rates in an effort to increase private banking rates?
What is inflation
OR
What is when there's too much money in circulation?
TRA is struggling to collect enough funds for the increased government budget. But they've used these means, to boost tax collections.
What is higher tax rates?
Or
What is introducing different types of taxes like stamp duty?
There's too much money in circulation, how can the Central bank control this situation?
Introduce;
Open Market Operations:
Bonds
Interest Rates
(And any variation of this)
A war has broken out, would monetary or fiscal policy be ineffective at remedying the economy, or both?
What is fiscal policy would be more effective in a war?
The terminology referring to the amount of goods and services produced in a country in a year, often compared against other countries as well?
What is Gross Domestic Product (GDP)?
A policy, previously discussed, that the central bank can use to control the supply of money.
What is monetary policy?
ITS A RECESSION. The government sends a stimulus check to each household. What policy is this?
What is Fiscal Policy?
Both policies aim to maintain the economy by managing things like jobs, circulation of money and economic growth.
What is monetary policy and fiscal policy?
A building has recently collapsed in kariakoo, everybody is afraid to go so nobody's shopping anymore. What can the government do to remedy the situation?
Is Mrs. Chikowore convinced?
Prolonged significant decline in economic activity.
What is Recession?