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3.6 Monetary policy

3.6 Monetary policy

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Question 2

A country raises interest rates to reduce inflation. Which pair of short-run effects is most likely?

[1]
A

More borrowing and more investment

B

Less consumer spending and weaker demand for labour

C

Higher economic growth and lower unemployment

D

Lower saving and a weaker incentive to hold the currency

Markscheme

3.6 Monetary policy Questions

  1. GCSE
  2. /Economics
  3. /3.6 Monetary policy

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.

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