CIMA Fundamentals of Business Economics BA1 Question # 40 Topic 5 Discussion

CIMA Fundamentals of Business Economics BA1 Question # 40 Topic 5 Discussion

BA1 Exam Topic 5 Question 40 Discussion:
Question #: 40
Topic #: 5

If in a boom a government adopted a contractionary (restrictive) monetary policy, a typical business would expect to experience:

i. Higher interest payments on its bank borrowing.

ii. Falling credit based sales.

iii. Higher income and corporate taxes.

iv. Lower sales to government agencies.

v. Difficulties in securing working capital

vi. Higher prices for imported components.


A.

(i), (ii) and (vi) only


B.

(i), (ii) and (v) only


C.

(ii), (iii) and (iv) only


D.

(i), (iii) and (iv) only


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