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2.3 How the government manages the economy

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Question 64

The central bank raises interest rates to control inflation. Which pair of effects is most likely before inflation falls?

[1]
A

Borrowing becomes cheaper and saving less rewarding

B

Borrowing becomes cheaper and spending decreases

C

Borrowing becomes dearer and spending decreases

D

Borrowing becomes dearer and spending increases

Markscheme

2.3 How the government manages the economy Questions

  1. GCSE
  2. /Economics
  3. /2.3 How the government manages the economy

104 exam-style questions on AQA GCSE Economics 2.3 How the government manages the economy, covering 2.3.1a Fiscal policy and income and expenditure, 2.3.1b Fiscal policy and government objectives, 2.3.1c The government budget, 2.3.2a The meaning of monetary policy, 2.3.2b Uses of monetary policy, 2.3.3a Supply-side policies and their trade-offs, 2.3.3b Using supply-side policies, and 2.3.4 Policies to correct positive and negative externalities. Each one has a worked solution and a mark scheme showing where the marks go.

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