Economics 9708 · AS & A Level · Monetary policy

Monetary policy — practice question

National inflation rates differ greatly, but they have fallen in most countries over recent years. Which combination could best account for this fall in inflation rates?

  • Aincreased consumer expenditure and tighter control on international trade
  • Bincreasing international competition and reduced world incomes
  • Clow interest rates and expectations of future price increases
  • Dprotectionist trade measures and a rise in raw material prices

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