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3.6 Monetary policy

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Question 90

Why may higher interest rates reduce demand-pull inflation?

[1]
A

They increase disposable income

B

They discourage borrowing and spending

C

They shift supply left

D

They make saving less attractive

Markscheme

3.6 Monetary policy Questions

  1. GCSE
  2. /Economics
  3. /3.6 Monetary policy

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.

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