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Economics (AS & A Level) · Oct / Nov 2025 · Paper 14 · Question 25

9708Monetary policy

An increase in interest rates is an example of which type of policy?

  1. Acontractionary fiscal policy
  2. Bcontractionary monetary policy
  3. Cexpansionary monetary policy
  4. Drestrictive supply-side policy

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Correct answer: B. contractionary monetary policy

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