QCEVault

Economic management — Question 22

Original QCE Vault practice · 1 mark

Q22 · Practice questionComplex familiar1 mark

QUESTION 22

Lower interest rates raise housing values. Owners feel wealthier and increase spending even though current wages are unchanged. This illustrates the

(A)
automatic-stabiliser mechanism.
(B)
wealth channel.
(C)
tax-revenue channel.
(D)
import-leakage multiplier only.
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