Skip to main content
A-LevelEconomicsMacroeconomic PolicyFeb/Mar 2021Paper 1 Q281 Mark

The table shows the consumer prices index (CPI) for an economy expressed as an index number. year CPI 2016 100 2017 103 2018 101 2019 97 Which action is the government most likely to take to achieve price stability?

Aappreciate the exchange rate
Bdecrease the budget deficit
Cincrease the money supply
Dincrease the rate of interest

✓ Correct Answer

The correct answer is C. This question tests the candidate's understanding of macroeconomic 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

About This A-Level Economics Question

This multiple-choice question appeared in the Cambridge A-Level Economics (9708) Feb/Mar 2021 examination, Paper 1 Variant 2. It tests the topic of Macroeconomic Policy and is worth 1 mark.

Oracle Prep provides AI-powered practice for all Cambridge O-Level and A-Level subjects. Our platform includes topic predictions with 87.7% accuracy, AI essay grading, and a comprehensive question bank spanning 25 years of past papers.

© 2026 Oracle Prep — The AI-Powered Cambridge Exam Engine