A-LevelEconomicsGovernment macroeconomic intervention9708/12 · May/June 2016 · Q281 Mark

An increase in interest rates is an example of which type of policy?

Acontractionary fiscal policy

Bcontractionary monetary policy

Cexpansionary monetary policy

Drestrictive supply-side policy

✓ Correct answer

B: contractionary monetary policy

Practise more questions on this topic

Oracle Prep sorts past-paper questions by topic, so you can drill Government macroeconomic intervention and see which topics are most likely to come up next.

About this question

Topic: Government macroeconomic intervention, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source: A-Level Economics, May/June 2016 Paper 1 Variant 2, question 28.

Questions and mark schemes are from past examination papers and remain the copyright of the exam board. How Oracle Prep builds its content

Related Economics questions

Government macroeconomic interventionFeb/Mar 20181m

Which statement about transfer payments is correct?

Government macroeconomic interventionFeb/Mar 20181m

Which action is classified as a fiscal policy measure?

Government macroeconomic interventionFeb/Mar 20181m

Which type of policy would have the most immediate effect in dealing with a deflationary economic downturn?

The price system and the microeconomyFeb/Mar 20171m

To maximise total revenue, up to which point should a monopolist increase output?

The price system and the microeconomyFeb/Mar 20171m

A firm is operating in perfect competition. What will be the effect on the firm's revenue if it increases its output …

The price system and the microeconomyFeb/Mar 20171m

A firm successfully engages in a policy of predatory pricing. What will happen to the prices charged by the firm in t…

← Browse all past-paper questions