A contractionary monetary policy has been implemented by the central bank. Which one of the following combinations of macroeconomic changes is most likely to occur?
A fall in share prices and a rise in the savings ratio
A rise in the demand for mortgages and a fall in the exchange rate
An increase in business investment and a fall in unemployment
A fall in the price of exports and an increase in consumer credit
176 exam-style questions on AQA A Level Economics 2.4 Financial markets and monetary policy (A-level only), covering 2.4.1 The structure of financial markets and financial assets, 2.4.2 Commercial banks and investment banks, 2.4.3 Central banks and monetary policy, and 2.4.4 The regulation of the financial system. Each one has a worked solution and a mark scheme showing where the marks go.