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Economics (AS & A Level) · May / June 2025 · Paper 32 · Question 21

9708Government macroeconomic policy objectives

In a closed economy, the central bank raises interest rates to reduce an increasing rate of inflation. Which macroeconomic policy objective is this targeting?

  1. Aa surplus on the current account of the balance of payments
  2. Bfaster economic growth
  3. Cfull employment
  4. Dstable prices

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Correct answer: D. stable prices

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