A-LevelEconomicsGovernment macroeconomic intervention9708/12 · Oct/Nov 2025 · Q191 Mark
A central bank is asked by the government to help achieve price stability. If inflation rises steeply, which policy will not be directly within the control of the central bank?
Aincreasing the rate of interest to reduce consumer spending
Bmanaging a reduction of the money supply
Cusing credit restrictions to regulate lending by commercial banks to households
Drestricting wage increases in the private and public sectors
✓ Correct answer
D: restricting wage increases in the private and public sectors
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