Questions 1-4 relate to News Media 1.

Link:https://www.youtube.com/watch?v=vW5dg221FBI(Links to an external site.)

1. JobKeeper was a Australian government initiative introduced during the Coronavirus pandemic to ensure that businesses could continue to employ workers. The following Youtube video (https://www.youtube.com/watch?v=vW5dg221FBI) explores potential government initiatives following the conclusion of JobKeeper. Watch the video and answer the questions.

The video proposes a HECs-style government loan to be offered to businesses following the conclusion of JobKeeper. Why might the government prefer to give a loan to businesses rather than a subsidy?

Group of answer choices:

a) Since firms have to pay it back eventually, the government ensures that businesses do not grow too quickly

b) The government wants to minimise the effect of this initiative on its deficit, while still supporting businesses

c) Giving a subsidy to businesses may cause a reduction in innovation and therefore a waste of taxpayers dollars

d) B and C are possible

2. The video claims that a HECs-style government loan would lead to "the taxpayer... propping [up] "zombie" firms and the loan [would not] be repaid." What is meant by this?

Group of answer choices:

a) Lifeless firms would continue to operate, generating profits followed by defaulting on the government loan

b) Firms will continue to have no customers, meaning they have no means to repay the government

c) Firms will file for bankruptcy so they don't have to repay the government

d) None of the options

3. What might be a loophole in the HECs-style government loan plan?

Group of answer choices:

a) Businesses that take part may never earn above the threshold required to make mandatory payments on the loan

b) Businesses that take part may never earn below the threshold required to make mandatory payments on the loan

c) The amount lended is too small to support businesses

d) The amount lended is too large to support businesses

4. The Blueprint Institute suggests extending the current financial incentives of hiring young workers to older workers. In the AD-AS model, this would cause the AD curve to __________

[ Select ] ["shift to the right", "shift to the left", "remain unchanged"] and the SRAS curve to _________ [ Select ] ["shift to the right", "shift to the left", "remain unchanged"] . As a result, the price level would _________ [ Select ] ["increase", "decrease", "remain unchanged"] and GDP would ________ [ Select ] ["increase", "decrease", "remain unchanged"] . In the short run, the economy would operate _______ [ Select ] ["above", "below", "at"] the natural rate of unemployment and _______ [ Select ] ["above", "below", "at"] the natural rate of output.

Questions 6-11 relate to News Media 2.

Read the article"Aussie Wedged Between QE and Commodities: Currencies"by Luke Housego (Link:https://www-proquest-com.ezproxy.lib.uts.edu.au/docview/2474693476/69A91AE02CEA4231PQ/1?accountid=17095Links to an external site.orhttps://bit.ly/2R0gYD1(Links to an external site.)) and answer the questions.

6. According to the article, "Market economists expect the Australian dollar to remain wedged between the duelling forces of upward pressure from Australia's commodity exports and downward pressure from the Reserve Bank's $100 billion quantitative easing (QE) program."

This means as the demand for Australia's commodity exports increase, the ________ [ Select ] ["supply", "demand"] for the Australian dollar would _________ [ Select ] ["shift to the right", "shift to the left", "remain unchanged"] and the Australian dollar to __________ [ Select ] ["appreciate", "depreciate", "remain unchanged"] .

Quantitative easing involves the Reserve Bank _________ [ Select ] ["increasing", "decreasing", "not changing"] the money _________ [ Select ] ["demand", "supply"] . It will cause a _________ [ Select ] ["movement up", "movement down", "shift to the right of", "shift to the left of"] this curve. This would cause the Australian dollar to __________ [ Select] ["appreciate", "depreciate", "remain unchanged"] .

With these two factors combined, the final effect on the Australian dollar would be [ Select ] ["an appreciation", "a depreciation", "unknown"] .

7. According to the article, Australia's most popular export is:

Group of answer choices

a) Aluminium

b) Copper

c) Oil

d) Iron ore

8. According to the article, "ongoing QE [quantitative easing] from central banks in the US, Europe and Asia weigh... on the value of their respective currencies, and lift... the Australian dollar in turn." This means that there is ________ [ Select ] ["an increase", "a decrease", "no change"] in the __________ [ Select ] ["demand", "supply"] of foreign currencies, causing ________ [ Select ] ["a depreciation", "an appreciation", "no change"] relative to other currencies like the Australian dollar.

9. According to the article, "with COVID-19 vaccines now being distributed in a number of jurisdictions and commodity-hungry Asia on track for strong activity, nine forecasters expect the currency to hit US80 or beyond." This optimistic forecast is most likely due to:

Group of answer choices:

a) The vaccine rollout would lead to anticipation that the borders will open as well as Asia's demand for Australian commodities would drive the demand for the Australian dollar

b) The vaccine rollout would lead to anticipation that the borders will close as well as Asia's demand for Australian commodities would drive the demand for the Australian dollar

c) The vaccine rollout would lead to anticipation that the borders will open as well as Asia's demand for Australian commodities would drive the supply for the Australian dollar

d) The vaccine rollout would lead to anticipation that the borders will close as well as Asia's demand for Australian commodities would drive the supply for the Australian dollar

10. According to the article, the Australian dollar is:

Group of answer choices:

a) Positively related to the global economy

b) Negatively related to the global economy

c) Unrelated to the global economy

d) Independant of the global economy

11. According to the article, "MLC Asset Management economist Bob Cunneen said that given the Reserve Bank's forward guidance that interest rates won't rise above 0.1 per cent for the next three years or so, it has exhausted the conventional interest rate response to currency pressure."

In this case, the conventional interest rate response to currency pressure would be to __________ [ Select ] ["raise", "lower", "maintain current"] interest rates, which would make the relative return on Australian investments _________ [ Select ] ["higher than", "lower than", "the same as"] foreign investments. This would cause Australian capital inflows to __________ [ Select ] ["increase", "decrease", "remain unchanged"] and Australian capital outflows to _________ [ Select ] ["increase", "decrease", "remain unchanged"] . Hence the demand for the AUD would __________ [ Select ] ["shift to the right", "shift to the left", "remain unchanged"] and the supply for the AUD would ___________ [ Select ] ["shift to the right", "shift to the left", "remain unchanged"] and ultimately the AUD to __________ [ Select ] ["appreciate", "depreciate", "remain unchanged"] .

My answers:

1. D

2. A

3. A

4. Remain unchanged, shift to the right, decrease, increase, above, above.

6. Demand, shift to the right, appreciate, increasing, supply, shift to the left, depreciate, depreciation.

7. D

8. An increase, supply, a depreciation.

9. A

10. B

11. Lower, higher than, increase, decrease, shift to the right, remain unchanged, appreciate.

If someone could please let me know if my answers are correct or not and advise me on the correct ones thank you !!!