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

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Question 33

Under which one of the following combinations of macroeconomic developments is the Monetary Policy Committee (MPC) of the Bank of England most likely to reduce the Bank Rate to prevent inflation from falling below its target?

A

Unit labour costs: Rising; External value of Sterling: Falling; Household savings ratio: Falling

B

Unit labour costs: Falling; External value of Sterling: Falling; Household savings ratio: Rising

C

Unit labour costs: Rising; External value of Sterling: Rising; Household savings ratio: Falling

D

Unit labour costs: Falling; External value of Sterling: Rising; Household savings ratio: Rising

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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