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Economics (AS & A Level) · May / June 2025 · Paper 12 · Question 21

9708Monetary policy

What is likely to be an expansionary monetary policy?

  1. Aa decrease in the availability of credit
  2. Ba decrease in the exchange rate
  3. Can increase in government spending
  4. Dan increase in subsidies for training

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Correct answer: B. a decrease in the exchange rate

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