Macroeconomic policies and property markets

Question 1

macroeconomic objectives

Answer 1

promoting GDP growth, maintaining price stability, ensuring employment, balancing trade

Question 2

macroeconomic objectives links with property sector

Answer 2

influencing investment, development and overall market demand & supply

Question 3

fiscal policy

Answer 3

government taxation and spending decisions, affecting public investment in housing

Question 4

monetary policy

Answer 4

conducted by central banks, manages money supply, credit availability & interest rates

Question 5

monetary policy tools: open market operation

Answer 5

buying/selling government bonds to regulate money supply & influence long term interest rates

Question 6

monetary policy tools: policy rate

Answer 6

benchmark lending rate that guides commercial bank rates, impacting mortgage affordability

Question 7

monetary policy tools: reserve requirements

Answer 7

minimum reserves banks must maintain, affecting their ability to lend for real estate projects

Question 8

fiscal policy mechanisms: taxation

Answer 8

direct taxes on income & indirect taxes like VAT

Question 9

fiscal policy mechanisms: government spending

Answer 9

investment in public services, infrastructure and welfare payments

Question 10

fiscal policy mechanisms: public borrowing

Answer 10

issuance of bonds to finance government deficits, affecting national debt

Question 11

fiscal policy impact on property sector 1

Answer 11

government expenditure can boost property demand by enhancing economic activity

Question 12

fiscal policy impact on property sector 2

Answer 12

large scale public projects can lead to increased employment and economic activity in construction sector

Question 13

fiscal policy impact on property sector 3

Answer 13

support affordable housing & provide incentives for property investment