Economics 9708 · AS & A Level · Monetary policy

Monetary policy — practice question

In what way might high interest rates raise a country’s inflation rate?

  • Aby increasing the current borrowing costs of business
  • Bby increasing the current borrowing costs of government
  • Cby increasing the foreign exchange rate of the currency
  • Dby increasing the opportunity cost of spending

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