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

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Question 11

In an economy, an index representing the money supply multiplied by its velocity of circulation increases from 100 to 120.96. Over the same period, the real final output produced by the economy increases from 100 to 112.

According to the Fisher equation of exchange, the price level will change by:

$8%8\%$

$8.96%8.96\%$

$12%12\%$

$20.96%20.96\%$

Markscheme

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

A Level
Economics
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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