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Economics · Oct / Nov 2019 · Paper 13 · Question 19

2281Monetary policy

The government uses monetary policy and reduces the interest rate. What might be a consequence of this?

  1. Aa decrease in the rate of inflation
  2. Ban increase in the level of investment
  3. Can increase in the level of savings
  4. Dan increase in unemployment

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Correct answer: B. an increase in the level of investment

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