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

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Question 31

The consequence of lowering the central bank's base interest rate when the external value of the domestic currency is already falling is likely to be an increase in

the rate of cyclical unemployment.

the volume of imported manufactured goods.

the domestic rate of inflation.

the international purchasing power of the currency.

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)