To manage macroeconomic stability, policy makers use a range of intervention strategies. Which of the following measures represents an instrument of monetary policy?
A temporary reduction in the standard rate of Corporation Tax to stimulate private sector investment
An increase in government spending on national infrastructure projects to boost aggregate demand
The sale of government debt securities by the central bank to commercial banks to contract the money supply
The statutory indexation of the national minimum wage to the rate of consumer price inflation
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.