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Economics (AS & A Level) · May / June 2026 · Paper 14 · Question 21

9708Monetary policy

An economy is at a point within its production possibility curve (PPC). Which monetary policy will help the government to achieve a macroeconomic objective of lower unemployment?

  1. Aan increase in credit regulations
  2. Ban increase in the exchange rate
  3. Can increase in the interest rate
  4. Dan increase in the money supply

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Correct answer: D. an increase in the money supply

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