Economics 9708 · AS & A Level · Monetary policy

Monetary policy — practice question

A government raises its inflation rate target from 3% to 5%. What is a likely explanation for this?

  • Ato increase economic sustainability
  • Bto increase saving
  • Cto reduce a balance of payments deficit
  • Dto reduce unemployment

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI