In Eastmere, total spending is growing faster than the economy's capacity to supply goods and services, and inflation is above the central bank's target.
Explain how the central bank could use interest rates to reduce inflation.
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.