Economics 9708 · AS & A Level · Monetary policy

Monetary policy — practice question

If the money supply rises, interest rates fall. What other factor will also fall as a consequence of these changes?

  • Athe desire to hold idle money balances
  • Bthe price of equities
  • Cthe price of government bonds
  • Dthe velocity of circulation of money

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