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3.6 Monetary policy

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Question 11

Many households buy washing machines and fridges on credit. These appliances are made in local factories. The central bank cuts its interest rate, and lenders lower the rates they charge on this credit. What is the most likely short-run effect on the local appliance factories?

[1]
A

Appliance sales fall and the factories hire more workers

B

Appliance sales rise and the factories hire fewer workers

C

Appliance sales rise and the factories hire more workers

D

Appliance sales fall and the factories hire fewer workers

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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