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Monetary policy

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Question 1

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

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

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

Decreasing government spending on national infrastructure by £5 billion

Selling government bonds to commercial banks (quantitative tightening)

Monetary policy Questions

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