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Edexcel IGCSE Economics 2.1.2.b monetary policy and interest rates

Practise monetary-policy questions by calculating interest and assessing how base-rate changes affect borrowing, spending and output.

Syllabus
First assessment 2019
Course
Economics 4EC1

Exam points

  • Calculate interest on savings or loans from a given rate and amount of money.
  • Explain how a base-rate change affects borrowing, spending, investment and output.
  • Assess whether monetary policy can reduce inflation or unemployment in context.

2.1.2.b Monetary policy – focused on interest rate changes question 1

[Maximum number: 2]

Describe one impact on consumers of an increase in interest rates.

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