A cut in interest rates increases growth but inflation moves above target. What is the clearest policy conflict?
Lower borrowing has reduced investment
Higher saving has reduced spending
Price stability has improved at the cost of employment
Faster growth has been achieved at the cost of price stability
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.