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2.2 Government objectives

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Question 2

The government raises interest rates to reduce inflation. A household has a variable-rate mortgage, and its employer relies on sales made using consumer credit. Which combined effect is most likely in the short run?

[1]
A

Mortgage payments decrease and the risk of unemployment decreases

B

Mortgage payments decrease and the risk of unemployment increases

C

Mortgage payments increase and the risk of unemployment decreases

D

Mortgage payments increase and the risk of unemployment increases

Markscheme

2.2 Government objectives Questions

  1. GCSE
  2. /Economics
  3. /2.2 Government objectives

189 exam-style questions on AQA GCSE Economics 2.2 Government objectives, covering 2.2.1a The main economic objectives, 2.2.1b Conflicts between government objectives, 2.2.1c Other objectives and ethical considerations, 2.2.2a The significance of economic growth, 2.2.2b Causes, costs, benefits and policies for growth, 2.2.2c GDP measures and calculations, 2.2.3a Measuring employment and unemployment, 2.2.3b Types and causes of unemployment, 2.2.3c Consequences and policies for unemployment, 2.2.4a What inflation is, 2.2.4b Measuring inflation with the CPI, 2.2.4c Causes, consequences and control of inflation, 2.2.5a Balance of trade and balance of payments, 2.2.5b Current account surpluses and deficits, 2.2.5c Policies to influence the balance of payments, 2.2.6a Income and wealth inequality in the UK, 2.2.6b Causes and consequences of inequality, and 2.2.6c Redistributing income and wealth. Each one has a worked solution and a mark scheme showing where the marks go.

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