The table below shows the central bank interest rates in four countries in 2023 and 2024.
| Aethelgard | Bregoland | Cairnhaven | Darnassus | |
|---|---|---|---|---|
| 2023 rate of interest | 5.5% | 2.0% | 1.25% | 4.5% |
| 2024 rate of interest | 3.75% | 4.25% | 3.5% | 2.75% |
Which of the following would best explain the possible macroeconomic aims of the changes in monetary policy that occurred between 2023 and 2024?
Aethelgard was trying to encourage domestic saving; Bregoland was trying to stimulate domestic consumption.
Aethelgard was trying to stimulate domestic consumption; Cairnhaven was trying to dampen inflationary pressures.
Bregoland was trying to encourage business investment; Darnassus was trying to reduce inflationary pressures.
Cairnhaven was trying to stimulate economic growth; Darnassus was trying to encourage household saving.
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.