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Monetary policy

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Question 1

Which of the following is an example of an expansionary monetary policy?

A

Decreasing the central bank's base interest rate by 0.5%

B

Decreasing the standard rate of Value Added Tax (VAT) by 2%

C

Decreasing government spending on national infrastructure by £5 billion

D

Selling government bonds to commercial banks (quantitative tightening)

Markscheme

Monetary policy Questions

  1. A Level
  2. /Economics
  3. /Monetary policy

27 exam-style questions on OCR A Level Economics Monetary policy. Each one has a worked solution and a mark scheme showing where the marks go.

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