A-LevelEconomicsMonetary and Fiscal PolicyMay/June 2021Paper 1 Q281 Mark
Why are higher interest rates together with increased taxation on expenditure likely to cause domestic deflation?
Abecause the contractionary monetary policy will over-ride the expansionary fiscal policy
Bbecause the monetary and fiscal policies involved will reinforce each other
Cbecause the expansionary monetary policy will over-ride the contractionary fiscal policy
Dbecause the monetary and fiscal policies involved will cancel each other out
✓ Correct Answer
The correct answer is B. This question tests the candidate's understanding of monetary and fiscal policy within the Economicssyllabus. The examiner's mark scheme requires...
📋 Examiner Report & Trap Analysis
Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...
🔒
Unlock the Examiner's Answer
Sign up for free to reveal the correct answer, the official mark scheme breakdown, and the examiner trap analysis for this question.
Sign Up Free to Unlock →Join thousands of Cambridge students already using Oracle Prep