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Cambridge IGCSE Economics practice

Paper 2 structured question: Monetary policy

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Monetary policy

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Paper 2Structured Questions3 marks

Understanding the impact of monetary policy on the economy.

Description

Impact of Monetary Policy

Monetary policy can influence inflation, employment, and economic growth through various tools.

  1. a

    Explain how changing the money supply can affect inflation.

    Aim for approximately 3 distinct marking points.

    [3]

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Paper 2 structured question: Monetary policy

Paper 2Structured Questions1 marks

Description

Monetary Policy Tools

Monetary policy tools include adjustments to interest rates, changes in the money supply, and foreign exchange rate management.

  1. a

    State one tool of monetary policy.

    Aim for approximately 1 distinct marking point.

    [1]