Acca paper F1 fia diploma in Accounting and Business Accountant in Business (AB/fab) exam kit

constant, which two of the following would this be expected to cause? 
(i) 
A fall in aggregate demand 
(ii) 
Rising aggregate demand 
(iii) Imported 
inflation 
(iv) Monetary 
inflation 
A 
(i) and (iii) 
B 
(i) and (iv) 
C 
(ii) and (iii) 
D 
(ii) and (iv)
 (2 
marks) 
101 Which of the following would be classified as an expenditure-reducing strategy? 
A 
Providing subsidies to exporters
B 
Lowering the currency exchange rate (devaluation) 
C 
Running a budget surplus 
D 
Import tariffs and quotas 
(2 marks) 
102 
Governments may need to intervene in the economy in order to move it nearer to its 
equilibrium point. 
Which approach to economics does this statement relate to? 
A Keynesian 
B Monetarist 
(1 mark)
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P AP E R F 1 ( F A B ) :
AC COU N TAN T IN B US INES S
 
24
KA P LA N P UBL I SH IN G 
EXTERNAL ANALYSIS – SOCIAL, ENVIRONMENTAL AND 
TECHNOLOGICAL FACTORS 
103 
Consider the following statements: 
(1) 
Monitoring population growth is usually only important for public or governmental 
organisations. 
(2) 
‘Attitudes’ represent an individual’s personal preferences or patterns of choice.
Which of these statements is/are correct? 
A (1) 
only 
B (2) 
only 
C Both 
D Neither
 (2 
marks) 
104 
Consider the following statements: 
(1) 
An aging population represents a risk to all businesses that manufacture or sell 
technologically advanced products. 
(2) Changes in social structure can have a significant impact on a country’s buying 
patterns.