A household has £10,000 in a savings account and owes £4,000 on a loan. The interest rate on the savings account rises from 3% to 5%, and the interest rate on the loan rises from 7% to 9%. The balances stay unchanged for the next year, and there are no deposits or repayments.
Calculate the change in the household's net interest income (interest earned minus interest paid) over the next year.
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.