An increase in a central bank's policy interest rate during a period when the external value of the domestic currency is appreciating is most likely to lead to an increase in
the rate of economic growth.
the volume of domestic exports.
the level of spare capacity in the economy.
the rate of consumer price inflation.
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.