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2.2.2 Consumption (C)

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Question 11

Figure 1: Average quarterly value of new consumer credit advances in the UK, £ billions, Q1 2022 – Q4 2023

Quarter£ billions
Q1 20225.2
Q2 20225.4
Q3 20225.1
Q4 20224.8
Q1 20234.5
Q2 20234.2
Q3 20233.9
Q4 20233.5

Which one of the following macroeconomic developments is most likely to have caused the trend in new consumer credit advances shown in Figure 1?

A

A sustained rise in consumer confidence indices

B

A substantial increase in residential property values

C

A decision by the central bank to raise its policy interest rate

D

A decrease in the household marginal propensity to save (MPSMPSMPS)

Markscheme

2.2.2 Consumption (C) Questions

  1. A Level
  2. /Economics
  3. /2.2.2 Consumption (C)

40 exam-style questions on Edexcel A A Level Economics 2.2.2 Consumption (C). Each one has a worked solution and a mark scheme showing where the marks go.

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