高階ECON-INFA-010
If the Hong Kong Monetary Authority (HKMA) raises the Base Rate under the Linked Exchange Rate System, the most likely transmission to unemployment is:
A. Higher interest rates → lower investment → lower AD → higher cyclical unemployment✓ 答案
B. Higher interest rates → HKD depreciation → higher exports → lower unemployment
C. Higher interest rates → higher money supply → higher inflation → lower real wages → lower unemployment
D. No effect on unemployment as the Linked Exchange Rate System fixes interest rates
解說
Under the LERS, HKMA Base Rate follows US Fed. Higher rates increase borrowing costs, reduce I and C, lower AD, creating demand-deficient (cyclical) unemployment. HKD doesn't depreciate (pegged); money supply contracts, not expands.