CH3 Flashcards by Unknown Unknown | Brainscape

Q

Who sets interest rates?

A

MPC of B o E

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

What is inflation target set with reference to?

A

Set by Gov with reference to CPI

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

What are some impacts of a sharp rise in interest rates?

A

reduces disposable income
cuts housing market turnover
increases number of borrowers in arrears
reduced demand for owner occupied housing

How well did you know this?

1

Not at all

2

3

4

5

Perfectly