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2.4 Financial markets and monetary policy (A-level only)

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Question 47

In which one of the following combinations of economic indicators is a central bank most likely to raise interest rates to try to control inflationary pressures?

Unit labour costsExchange rate of domestic currencyHouse prices
ARisingFallingRising
BFallingRisingFalling
CRisingRisingFalling
DFallingFallingRising
A

Unit labour costs: Rising, Exchange rate: Falling, House prices: Rising

B

Unit labour costs: Falling, Exchange rate: Rising, House prices: Falling

C

Unit labour costs: Rising, Exchange rate: Rising, House prices: Falling

D

Unit labour costs: Falling, Exchange rate: Falling, House prices: Rising

Markscheme

2.4 Financial markets and monetary policy (A-level only) Questions

  1. A Level
  2. /Economics
  3. /2.4 Financial markets and monetary policy (A-level only)

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.

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