A furniture maker had postponed buying equipment for a larger workshop because borrowing was costly. Its bank now offers a lower interest rate, and orders for its furniture have been rising.
Explain how the change could affect economic growth and employment.
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.