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IB Economics HL 3.5.6 Effectiveness of monetary policy Question Bank

Practise IB Economics SL/HL 3.5.6 by applying effectiveness of monetary policy concepts to exam-style questions.

Syllabus
First assessment 2022
Course
Economics HL
Level
HL

Exam points

  • identify the relevant model, concept or evidence
  • apply the correct subject framework to the question
  • evaluate the result using clear evidence and subject terminology

3.5.6—Effectiveness of monetary policy question 1

[Maximum number: 1]

The information in Table 1 refers to Country A (base year: 2011).

Table 1

Table 1

State one reason why monetary policy is considered to have limited effectiveness in increasing aggregate demand if an economy is in a deep recession.

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