Skip to content

Course home

3.6 Monetary policy

3.6 Monetary policy

EasyMediumHard
123456789101112
Question 10

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

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.

Question bank