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

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Question 2

A contractionary monetary policy designed to control inflation is less likely to achieve this objective if, at the same time, the government:

cuts public sector capital investment.

raises the standard rate of value added tax (VAT).

freezes public sector pay.

increases its budget deficit.

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

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