The table below shows the central bank interest rates in four countries in 2024 and 2025.
| Alaria | Bregia | Caldon | Dalarna | |
|---|---|---|---|---|
| 2024 rate of interest | 5.00% | 1.75% | 0.50% | 4.50% |
| 2025 rate of interest | 3.75% | 3.00% | 2.00% | 3.25% |
Which of the following would best explain the possible aims of the changes in monetary policy that occurred between 2024 and 2025?
Alaria was trying to reduce inflationary pressures Bregia was trying to encourage consumer borrowing
Caldon was trying to curb inflationary pressures Dalarna was trying to stimulate business investment
Bregia was trying to stimulate aggregate demand Caldon was trying to encourage consumer borrowing
Alaria was trying to discourage consumer borrowing Dalarna was trying to stimulate domestic consumption
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.