Interest rates rise while consumer confidence also rises strongly. What can be concluded about consumer spending?
The overall effect is uncertain because the two changes work in opposite directions
It must fall because interest rates are the only influence
It must rise because confidence is the only influence
It is unaffected because neither factor changes disposable income
29 exam-style questions on OCR GCSE Economics 3.6 Monetary policy, covering 3.6.1 What is monetary policy, 3.6.2 Monetary policy and macro objectives, and 3.6.3 Effects of monetary policy. Each one has a worked solution and a mark scheme showing where the marks go.