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Economics (AS & A Level) · May / June 2026 · Paper 14 · Question 23

9708Monetary policy

The central bank of a country has increased interest rates to a high level. What will increase as a result of this?

  1. Acost of borrowing
  2. Beconomic growth
  3. Cemployment
  4. Dprice level

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Correct answer: A. cost of borrowing

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