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Economics (AS & A Level) · May / June 2026 · Paper 12 · Question 24

9708Monetary policy

Which action might be part of an expansionary economic policy?

  1. Areducing the budget deficit
  2. Breducing the level of government spending
  3. Creducing the money supply
  4. Dreducing the rate of interest

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Correct answer: D. reducing the rate of interest

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