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Economics (AS & A Level) · Oct / Nov 2025 · Paper 12 · Question 21

9708Monetary policy

What is an example of expansionary monetary policy?

  1. Athe central bank increasing the money supply
  2. Bthe central bank causing an appreciation of the country’s foreign exchange rate
  3. Cthe central bank increasing controls on credit lending
  4. Dthe central bank increasing the minimum lending rate of interest

As printed in the paper

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Correct answer: A. the central bank increasing the money supply

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