A-LevelEconomicsThe macroeconomy9708/31 · May/June 2017 · Q211 Mark

An increase in government expenditure is financed by borrowing from the central bank. Other things being equal, what will be the effect on the money supply? A It will decrease. B It will increase by an amount equal to the increase in government expenditure. C It will increase by more than the increase in government expenditure. D It will remain unchanged.

Mark scheme

Marking points from the official mark scheme (May/June 2017). The mark or mark type is shown in brackets.

On Oracle Prep you can write or photograph your own answer and have it marked by AI against this mark scheme, with feedback on what you missed.

Topic: The macroeconomy, A-Level Economics (syllabus 9708). Structured question, 1 mark.
Source: A-Level Economics, May/June 2017 Paper 3 Variant 1, question 21.

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