1.15 Read the following extract and answer question 1.15-1.18. SA inflation eases slightly in January Inflation eased to 5.7% in January, down from 5.9% the month prior which was a hair's breadth away from the ceiling of the South African Reserve Bank's target range of 3% to 6%, it was announced on Wednesday. According to Statistics South Africa, the main contributors to the 5.7% annual inflation rate were food and nonalcoholic beverages, housing and utilities, transport and miscellaneous goods and services. The 5.9% annual increase in December was the highest since March 2017, when the rate was 6.1%. The January slowdown in inflation was helped by lower fuel prices. South Africa's inflation numbers come as advanced economies post record figures, which have served as further proof that elevated prices are a stubborn feature of the recovery from the Covid-induced economic slump... Elevated inflation, which central banks have said will be transitory, is the result of Covid-related supply bottlenecks. Source: https://mg.co.za/business/2022-02-16-sa-inflation-eases-slightly-in-january/ Accessed: 18/02/22 Which of the following presents the view of inflation depicted above? (4 Marks) a) The monetarist approach. b) Cost pull inflation. c) Demand push inflation. d) The conflict approach. 1.16 From the above extract, the South African economy is in which phase of the business cycle? (4 Marks) a) The upturn phase. b) The expansion phase. c) The peaking out phase. d) The slowdown phase. 1.17 "The South African Reserve Bank's target range of 3% to 6%" is a demonstration of which of the following costs of inflation? (4 Marks) a) Distribution costs b) Economic costs c) Non-economic costs d) Social and political effects 1.18 Suppose that the bank later wishes to raise interest rates, which of the following instruments will they NOT make use of? (4 Marks) a) Accommodation policy b) Open-market policy c) Raise the Repo rate d) Raise the cost of borrowing