In which one of the following combinations of macroeconomic developments is the European Central Bank (ECB) most likely to raise its main refinancing interest rate to control inflationary pressures?
Unit labour costs: Rising; External value of the Euro: Rising; Household consumption: Rising
Unit labour costs: Falling; External value of the Euro: Falling; Household consumption: Falling
Unit labour costs: Rising; External value of the Euro: Falling; Household consumption: Rising
Unit labour costs: Falling; External value of the Euro: Rising; Household consumption: Rising
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.