A-LevelEconomicsGovernment macroeconomic intervention9708/32 · May/June 2020 · Q271 Mark
In 1936 Keynes explained how economic policy can be used to increase aggregate demand and prevent an economic depression.
- (a)Which policy supports Keynes' theory? A Central banks should raise interest rates and decrease liquidity. B Governments should increase expenditure and decrease taxation. C Governments should encourage consumer savings rather than expenditure. D Trading policy should prevent the free movement of capital.[1]
Mark scheme
Marking points from the official mark scheme (May/June 2020). The mark or mark type is shown in brackets.
- [1] B
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