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A-LevelEconomicsGovernment macroeconomic intervention9708/12 · May/June 2018 · Q281 Mark

What is an example of expansionary monetary policy?

Athe central bank buying government bonds in the money market
Bthe central bank causing an appreciation of the country's foreign exchange rate
Cthe central bank increasing controls on credit lending
Dthe central bank increasing the minimum lending rate of interest

✓ Correct answer

A: the central bank buying government bonds in the money market

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About this question

Topic
Government macroeconomic intervention, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source
A-Level Economics, May/June 2018 Paper 1 Variant 2, question 28.

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