O-LevelEconomicsGovernment and the macroeconomy2281/11 · May/June 2023 · Q181 Mark
Government policy measures can affect economic activity in a country. Which pair of monetary policy measures would be likely to increase employment?
Adepreciate foreign exchange rates and increase education spending
Bincrease money supply and reduce interest rates
Cprovide subsidies and grants and lower sales tax
Dreduce income tax and improve infrastructure
✓ Correct answer
B: increase money supply and reduce interest rates
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