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Economics (AS & A Level) · Feb / March 2024 · Paper 32 · Question 23

9708Monetary policy

The government increases interest rates in order to reduce the rate of inflation. What will also result from this action?

  1. Aa depreciation of the country's currency
  2. Ba fall in the level of savings
  3. Ca reduction in economic growth
  4. Da reduction in unemployment

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Correct answer: C. a reduction in economic growth

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