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O-LevelEconomicsGovernment and the macroeconomy2281/11 · May/June 2018 · Q161 Mark

What would a government reduce as part of an expansionary monetary policy to increase employment?

Agovernment spending
Bthe money supply
Cthe rate of interest
Dunemployment benefit

✓ Correct answer

C: the rate of interest

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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, May/June 2018 Paper 1 Variant 1, question 16.

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