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O-LevelEconomicsGovernment and the macroeconomy2281/13 · Oct/Nov 2025 · Q201 Mark

Which combination of policy measures is most likely to increase total demand in an economy?

Amoney supply: decrease, interest rate: decrease, exchange rate: revaluation
Bmoney supply: decrease, interest rate: increase, exchange rate: devaluation
Cmoney supply: increase, interest rate: decrease, exchange rate: devaluation
Dmoney supply: increase, interest rate: increase, exchange rate: revaluation

✓ Correct answer

C: money supply: increase, interest rate: decrease, exchange rate: devaluation

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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 2025 Paper 1 Variant 3, question 20.

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