A-LevelEconomicsThe macroeconomy9708/32 · May/June 2020 · Q301 Mark
To stimulate economic growth the government increases the size of its budget deficit and funds this by increasing the money supply.
- (a)What is most likely to reduce the effectiveness of these measures in achieving their aim? A a floating exchange rate B a high marginal propensity to import C a low marginal propensity to save D an interest-inelastic demand for money[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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