A-LevelEconomicsMacroeconomic Policy (Monetary Policy)Oct/Nov 2025Paper 1 Q221 Mark
What is the effect of an increase in the money supply on the interest rate and the aggregate demand (AD) curve?
Ainterest rate: falls, AD curve: shifts left
Binterest rate: rises, AD curve: shifts left
Cinterest rate: falls, AD curve: shifts right
Dinterest rate: rises, AD curve: shifts right
✓ Correct Answer
The correct answer is C. This question tests the candidate's understanding of macroeconomic policy (monetary 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...
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