Households are increasingly using credit to buy cars and furniture, while firms are producing close to the economy's capacity. The central bank raises Bank Rate.
Analyse the likely effects of this decision on economic growth, employment and price stability.
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.