Demand-side policies

Q12(e) Discuss how the Fed lifting its base rate to 5.5% by July 2023 is likely to affect the US economy.

Q4 Say what most likely follows from the European Central Bank halting its asset purchase programme in 2023.

Q10 Explain what quantitative easing means, using the chart of UK asset purchases from 2009 to 2020.

Q12(e) Discuss what the Bank of Japan would weigh up when deciding where to set its base rate.

Q12(c) Examine two routes by which Brazil's rate rise from 2% to 13.25% might bring inflation down.

Q11 Explain quantitative easing, using the ECB's roughly 3.5 trillion euro expansion of asset purchases since 2015.

Q14 Evaluate the macroeconomic consequences of deflationary measures aimed at balancing the budget, as in Argentina.

Q8 Draw aggregate demand with long-run aggregate supply for Nigeria's six percentage point base rate rise.

Q13 Evaluate the macroeconomic effects of dearer borrowing, as South Korea's base rate climbed to 3.5%.

Q12(e) Discuss the probable consequences for China of looser monetary policy by the People's Bank of China.

Q5 Identify a further central bank function besides banking for the state, given the Bank of Israel (lender of last resort / balanced budget / welfare payments / deregulation).

Q12(e) Discuss the likely consequences for India's economy of its central bank lifting the base rate.

Q5 Identify the policy stance shown by the ECB halting and then reversing its asset purchases.

Q12(c) Draw on Extract A to analyse two functions performed by a central bank.

Q5 Sri Lanka's central bank raised the base rate from 7.5% to 14.5% in April 2022. Identify the most likely impact, ceteris paribus.

Q10 Brazil's central bank lifted its base rate to 9.75% from 2% across 2021; explain one macroeconomic consequence likely to follow a higher base rate.

Q5 US central bank asset holdings grew to $8.8 trillion in 2021 from $7.3 trillion; identify the probable consequence of more quantitative easing.

Q10 Quantitative easing by the UK's central bank reached £895 billion in November 2020, up from £645 billion that March; explain one probable effect on aggregate demand.

Q2 Given the Reserve Bank of India's inflation target and its job as the government's banker, pick another central bank function. (increasing the trade deficit / lender of last resort / achieving national happiness / reducing income equality)

Q12(e) Discuss the macroeconomic consequences for the eurozone of ECB monetary policy, using the extracts and your wider study.

Q12(e) Using Extract A plus your own knowledge, discuss how ECB monetary policy is likely to play out for France's economy.

Q2 The Bank of England increased quantitative easing by £100 billion in June 2020. Identify the correct description. (reflationary or deflationary monetary or fiscal policy)

Q12(a) State what 'monetary policy' means, as the term appears in Extract A (brief definition).

Q10 After the US President attacked the central bank in August 2019, outline one function that a central bank performs.

Q12(d) Using Extract B, examine the arguments in favour of Australia's central bank cutting its base rate of interest.

Q10 Turkey lifted its base rate from 12.75% to 24% in 2018: use an AD/LRAS diagram to show long-run effects on demand, prices and output.

Q14 In 2018 China raised the threshold below which earnings go untaxed, aiming to lift aggregate demand; evaluate reflationary demand-side policy in an economy you select.

Q12(a) Give the meaning of the Argentinian central bank's base interest rate, as shown in the figure.

Q12(e) Discuss the policy options Argentina's government has for raising consumer spending, using both extracts.

Q7 Early in 2018 South Korea's policy rate went up from 1.25% to 1.5%; state one likely economic consequence.

Q6(g) Evaluate the demand-side measures used in response to the 2008 Global Financial Crisis.