Reference no: EM132592689

Money and Interest rates

It is argued that the principal economic reasons for government intervention fall under four broad headings: allocative, distributive, regulatory and macroeconomic. Which, if any, of these reasons for government intervention do you think justifies the imposition of the bank levy on banks' liabilities introduced in 2011? Explain each answer.

(a) allocative ................................................................................................... Yes / No

(b) distributive ................................................................................................. Yes / No

(c) regulatory................................................................................................... Yes / No

(d) macroeconomic ......................................................................................... Yes / No