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CAIE A-Level Economics AS 5.3.2 Monetary Policy Tools Questions

Practise explaining how interest rates, money supply and credit regulations operate as monetary policy tools in CAIE Economics AS questions.

Syllabus
2026–2028
Course
Economics 9708
Level
AS

Exam points

  • Explain how interest rates, money supply and credit regulations operate as tools of monetary policy.

CAIE A-Level Economics AS 5.3.2 Monetary Policy Tools Questions question 1

[Maximum number: 1]

A government wants to use an expansionary monetary policy.
What should the government increase?

A

credit regulations

B

the exchange rate

C

the interest rate

D

the money supply

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