O-LevelEconomicsMicroeconomic decision makers2281/11 · May/June 2020 · Q91 Mark

Which combination of influences would increase the level of borrowing by a household? [Figure 9.1]

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Abecoming pensioners, higher rate of inflation

Bgreater wealth, lower consumer confidence

Chigher consumer confidence, lower rate of interest

Dhigher rate of interest, greater availability of credit

✓ Correct answer

C: higher consumer confidence, lower rate of interest

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Topic: Microeconomic decision makers, O-Level Economics (syllabus 2281). Multiple choice, 1 mark.
Source: O-Level Economics, May/June 2020 Paper 1 Variant 1, question 9.

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