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2.6.2 Demand-side policies

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Question 4

In response to weakening domestic demand, the Reserve Bank of Australia (RBA) lowered its official interest rate from 1.50% to 0.75%.

Explain one likely impact of a decrease in the official interest rate on the rate of inflation.

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Markscheme

2.6.2 Demand-side policies Questions

  1. A Level
  2. /Economics
  3. /2.6.2 Demand-side policies

22 exam-style questions on Edexcel A A Level Economics 2.6.2 Demand-side policies. Each one has a worked solution and a mark scheme showing where the marks go.

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