Economics 9708 · AS & A Level · Monetary policy

Monetary policy — practice question

The central bank in a country lowers interest rates. What outcomes are likely to follow?

  • Aexternal value of the currency falls; internal value of the currency falls
  • Bexternal value of the currency rises; internal value of the currency falls
  • Cexternal value of the currency falls; internal value of the currency rises
  • Dexternal value of the currency rises; internal value of the currency rises

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