Economics 2281 · O Level · Monetary policy

Monetary policy — practice question

Interest rates are sometimes increased to help control inflation. Why could this policy be effective?

  • AConsumers may save more.
  • BGovernment spending may increase.
  • CInvestment may be encouraged.
  • DThe exchange rate may fall.

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