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O-LevelEconomicsGovernment and the macroeconomy2281/12 · May/June 2022 · Q181 Mark

A government wishes to pursue an expansionary monetary policy. What should it do?

Adiscourage bank lending
Bgive subsidies to firms
Clower income tax thresholds
Dlower interest rates

✓ Correct answer

D: lower interest rates

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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 2022 Paper 1 Variant 2, question 18.

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