Which one of the following is a monetary policy measure that is most likely to reduce the rate of inflation in an economy?
An increase in the government surplus
A reduction in the central bank's policy interest rate
The sale of government bonds by the central bank
A reduction in corporate tax rates on business profits
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.