A country raises interest rates to reduce inflation. Which pair of short-run effects is most likely?
More borrowing and more investment
Less consumer spending and weaker demand for labour
Higher economic growth and lower unemployment
Lower saving and a weaker incentive to hold the currency
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.