A-LevelEconomicsGovernment macroeconomic intervention9708/32 · May/June 2020 · Q281 Mark
A central bank increases the money supply in an attempt to stimulate investment and growth when the economy is in recession.
- (a)When might this policy be ineffective? A if the economy is in the liquidity trap B if the economy is in the poverty trap C if the Marshall-Lerner condition does not hold D if the value of the multiplier is very low[1]
Mark scheme
Marking points from the official mark scheme (May/June 2020). The mark or mark type is shown in brackets.
- [1] A
Write your answer and get it marked
On Oracle Prep you can write or photograph your own answer and have it marked by AI against this mark scheme, with feedback on what you missed.
Sign up free →