Chancellor: There will be temporary economic disruption due to coronavirus crisis

The video discusses the temporary economic disruption caused by supply and demand issues, affecting up to 1/5 of the working population and global supply chains. It outlines a strategy to support individuals and businesses, emphasizing temporary, timely, and targeted responses. The Bank of England's coordinated actions, including interest rate cuts and SME funding, aim to stabilize the economy. Confidence in recovery is expressed, with life expected to return to normal.

What is the primary cause of the temporary shrinkage in productive capacity?

• A permanent change in consumer behavior

• A temporary disruption in supply chains and workforce availability

• An increase in global demand

• A decrease in technological advancements

What is the immediate policy response to the fall in demand?

• Encourage international trade

• Reduce public services

• Provide security and support for those affected

• Increase taxes

How does the strategy ensure the temporary impact on productive capacity does not become permanent?

• By providing a bridge for businesses

• By halting all economic activities

• By increasing consumer taxes

• By reducing government spending

What role does the Bank of England play in the response strategy?

• It increases interest rates

• It introduces a term funding scheme for SMEs

• It reduces consumer spending

• It limits credit supply

What is one of the measures taken to support business and consumer confidence?

• An increase in consumer taxes

• A 50 basis point reduction in interest rates

• A 50 basis point increase in interest rates

• A freeze on all interest rates