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A-LevelEconomicsGovernment macroeconomic intervention9708/12 · Feb/Mar 2025 · Q231 Mark

A country's central bank decides to reduce the level of credit regulation. What is this an example of?

Acontractionary fiscal policy
Bcontractionary monetary policy
Cexpansionary fiscal policy
Dexpansionary monetary policy

✓ Correct answer

D: expansionary monetary policy

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About this question

Topic
Government macroeconomic intervention, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source
A-Level Economics, Feb/Mar 2025 Paper 1 Variant 2, question 23.

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