Economics Department

Monetary Policy Week 2 - essays

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This week's essay

1)      In 2003, the Bank of England cut interest rates

(a) Why might the Bank of England have reduced interest rates?     

10 marks

(b) What impact might the fall in interest rates have had on:

(i)                  Aggregate Demand

(ii)                Output and Employment

(iii)               The price level                                                                         

15 marks

Other essays

2)         To what extent can the government use interest rates to achieve all four macroeconomic policy objectives?                                                                    

25 marks