AS Paper 2, November 2020The UK Economy – Performance and Policies

AS Paper 2, November 2020, Q4(c)

Which one of the following demand-side policies best explains a rise in the base interest rate?

Multiple choice1 mark

Context

In August 2018 the Monetary Policy Committee of the Bank of England raised the UK’s base interest rate from 0.5% to 0.75%.

AContractionary fiscal policy
BContractionary monetary policy
CExpansionary fiscal policy
DExpansionary monetary policy

Specification topics

Demand-side policies

Revision notes

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