Economics · Oct / Nov 2025 · Paper 13 · Question 20
2281Monetary policy
Which combination of policy measures is most likely to increase total demand in an economy?
- Amoney supply: decrease; interest rate: decrease; exchange rate: revaluation
- Bmoney supply: decrease; interest rate: increase; exchange rate: devaluation
- Cmoney supply: increase; interest rate: decrease; exchange rate: devaluation
- Dmoney supply: increase; interest rate: increase; exchange rate: revaluation
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Correct answer: C. money supply: increase; interest rate: decrease; exchange rate: devaluation
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