Economics 9708 · AS & A Level · Monetary policy

Monetary policy — practice question

The graph illustrates inflation rates over 10 years for selected emerging economies. Government central banks establish target minimum inflation rates before readjusting interest rates to stabilise the economy. If the minimum inflation rate target set by central banks was 4% per year, at which points would they permit interest rates to fall?

  • AW and X
  • BX and Y
  • CY and Z
  • DZ and W

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