O-LevelEconomicsGovernment and the macroeconomy2281/11 · May/June 2019 · Q191 Mark
Which statement about interest rate changes is accurate?
Afall in interest rates will always increase inflation.
Brise in interest rates may increase cost-push inflation.
Crise in interest rates will raise the level of investment in a country.
DInterest rate changes have no impact on the level of production.
✓ Correct answer
B: rise in interest rates may increase cost-push inflation.
Practise more questions on this topic
Oracle Prep sorts past-paper questions by topic, so you can drill Government and the macroeconomy and see which topics are most likely to come up next.
Sign up free →