A-LevelEconomicsGovernment macroeconomic intervention9708/12 · Feb/Mar 2017 · Q281 Mark

A government wants to operate a tighter monetary policy. What would it increase?

Abudget surplus

Binterest rate

Cmoney supply

Drates of taxation

✓ Correct answer

B: interest rate

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Topic: Government macroeconomic intervention, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source: A-Level Economics, Feb/Mar 2017 Paper 1 Variant 2, question 28.

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