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

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Question 3

A central bank has lowered its main policy interest rate. Which one of the following policy objectives is this decision most likely to assist the government in achieving?

A

Reducing the rate of cyclical unemployment

B

Decreasing the level of national output

C

Achieving a surplus on the balance of payments current account

D

Promoting a higher rate of household saving

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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