Economics (AS & A Level) · Feb / March 2021 · Paper 12 · Question 28

The table shows the consumer prices index (CPI) for an economy expressed as an index number. | year | CPI | | 2016 | 100 | | 2017 | 103 | | 2018 | 101 | | 2019 | 97 | Which action is the government most likely to take to achieve price stability?

1. Aappreciate the exchange rate
2. Bdecrease the budget deficit
3. Cincrease the money supply
4. Dincrease the rate of interest

As printed in the paper