After a central bank raises its interest rate, a survey of 1,000 households records the following changes in annual disposable income:
| Household group | Number of households | Average annual change in disposable income |
|---|---|---|
| Borrowers | 600 | -£900 |
| Savers | 400 | +£300 |
Using the data, explain the likely effect of the rise in the interest rate on total spending.
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.