Economics (AS & A Level) · Oct / Nov 2025 · Paper 12 · Question 19

A central bank is asked by the government to help achieve price stability. If inflation rises steeply, which policy will not be directly within the control of the central bank?

1. Aincreasing the rate of interest to reduce consumer spending
2. Bmanaging a reduction of the money supply
3. Cusing credit restrictions to regulate lending by commercial banks to households
4. Drestricting wage increases in the private and public sectors

As printed in the paper