Economics 9708 · AS & A Level · Monetary policy

Monetary policy — practice question

Extremely low interest rates in an economy stimulate economic growth and lead to a substantial rise in house prices. Which group of people is most likely to see income decrease and wealth increase because of these changes?

  • Aretired people living in rented houses
  • Bretired people who own their houses
  • Cyoung people buying their own houses
  • Dyoung people living with their parents

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