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.
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.