Hartley Kitchens makes and fits kitchens. Its orders have fallen because many households have put off kitchen refits that they would pay for with loans. The firm has also postponed a plan to open a second workshop, paid for with a bank loan, which would need extra staff. The Monetary Policy Committee then cuts Bank Rate, and banks lower the interest rates they charge on loans to households and to businesses.
Analyse how the cut in Bank Rate may affect the number of workers employed by Hartley Kitchens.
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.