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A-LevelEconomicsMacroeconomic Aims and PoliciesFeb/Mar 2022Paper 1 Q301 Mark

What are government monetary policies that would be the most effective in a global recession?

Aallowing the rate of interest to fluctuate and increasing business taxation
Bincreasing the budget surplus and raising tariffs on imports
Ckeeping the rate of interest very low and increasing the money supply
Draising the rate of interest and restricting the money supply

✓ Correct Answer

The correct answer is C. This question tests the candidate's understanding of macroeconomic aims and policies 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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About This A-Level Economics Question

This multiple-choice question appeared in the Cambridge A-Level Economics (9708) Feb/Mar 2022 examination, Paper 1 Variant 2. It tests the topic of Macroeconomic Aims and Policies and is worth 1 mark.

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