Economics Multiple Choice Question – 2 December 2022

The monetary authorities increase interest rates in order to control inflation.

What is likely to increase as a result of this?

Select ONE answer:

1. firms’ sales revenue
2. investment expenditure
3. net capital outflows
4. the exchange rate

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Economics KS4 and KS5 classes.

The answer is 4

1. Not correct
2. Not correct
3. Not correct
4. Correct

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