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Monetary policy

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Question 5

Which of the following is an example of a monetary policy instrument used by a central bank to influence aggregate demand?

A

A reduction in the main rate of corporation tax to encourage business investment

B

An increase in government capital expenditure on nationwide high-speed broadband infrastructure

C

The purchase of government bonds from financial institutions under a quantitative easing programme

D

A tightening of the maximum loan-to-value limits on residential mortgages by a macroprudential authority

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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