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Monetary policy

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Question 14

The table below shows the central bank interest rates in four countries in 2024 and 2025.

AlariaBregiaCaldonDalarna
2024 rate of interest5.00%1.75%0.50%4.50%
2025 rate of interest3.75%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

Monetary policy Questions

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