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2.6.2 Demand-side policies

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Question 7

To combat rapid overheating in the domestic economy, the Bank of England raised its bank rate from 0.75% to 3.00%.

Explain one likely impact of an increase in the official interest rate on the rate of inflation.

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2.6.2 Demand-side policies Questions

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