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Economics · May / June 2017 · Paper 22 · Question 3

2281

As printed in the paper

The question as text

In 2015 some German commercial banks reduced their already very low interest rates on deposit accounts. The German Government was hoping that such a change would encourage more Germans to buy shares in German firms. The ability of German firms to buy capital goods would be increased if they could sell more shares or borrow more from commercial banks.

Read automatically from the paper; the printed page above is exact.

Show the answer and mark scheme
  • 3(a)[2]

  • 3(b)[4]

  • 3(c)[6]

  • 3(d)[8]

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