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3.6 Monetary policy

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Question 97

A cut in interest rates reduces mortgage payments for some households. Which chain is most likely?

[1]
A

Disposable income falls, so consumption falls

B

Saving becomes more attractive, so borrowing falls

C

Firms' borrowing costs rise, so investment falls

D

Some households have more disposable income, so consumer spending may rise

Markscheme

3.6 Monetary policy Questions

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

116 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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