Card 1 of 28
What happens to the cost of borrowing when Bank Rate rises?
A
Borrowing becomes dearer.
B
Firms need more workers to produce the higher level of output.
C
A firm expecting weak demand may not borrow to invest, however cheap the loan becomes.
D
Demand no longer runs ahead of the economy's capacity to supply goods and services.
Card 1 of 28
3.6.2 Monetary policy and macro objectives Flashcards
28 flashcards on OCR GCSE Economics 3.6.2 Monetary policy and macro objectives: the key terms, formulae and calculations you need to recall for Component 01 and Component 02.