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3.4 Price stability

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Question 24

What is a likely cost of inflation to a saver receiving a fixed 2% interest rate when inflation is 6%?

[1]
A

The nominal value of savings becomes zero

B

The bank must cancel the interest

C

The saver pays no tax

D

The real purchasing power of the savings falls

Markscheme

3.4 Price stability Questions

  1. GCSE
  2. /Economics
  3. /3.4 Price stability

62 exam-style questions on OCR GCSE Economics 3.4 Price stability, covering 3.4.1 Price stability and inflation, 3.4.2 Measuring inflation with CPI, 3.4.3 Calculate the effect of inflation, 3.4.4 Analyse inflation figures, and 3.4.5 Causes and consequences of inflation. Each one has a worked solution and a mark scheme showing where the marks go.

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