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O-LevelEconomicsGovernment and the macroeconomy2281/12 · Oct/Nov 2022 · Q181 Mark

A central bank reduces interest rates. What would not be a consequence of this action?

Abenefit for borrowers receiving loans
Bfall in the international value of the currency
Creduction in inflation
Dan increase in GDP

✓ Correct answer

C: reduction in inflation

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About this question

Topic
Government and the macroeconomy, O-Level Economics (syllabus 2281). Multiple choice, 1 mark.
Source
O-Level Economics, Oct/Nov 2022 Paper 1 Variant 2, question 18.

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