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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:

A

cuts public sector capital investment.

B

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

C

freezes public sector pay.

D

increases its budget deficit.

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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