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Economics · May / June 2026 · Paper 11 · Question 20

2281Monetary policy

What might be an undesirable outcome of expansionary monetary policy?

  1. Aa fall in total demand
  2. Ba fall in the rate of unemployment
  3. Ca rise in economic growth
  4. Da rise in the rate of inflation

As printed in the paper

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Correct answer: D. a rise in the rate of inflation

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