Pearson Edexcel Level 3 GCE 8EC0/02 2022 Economics A Advanced Subsidiary PAPER 2: The UK Economy – Performance and Policies

Document Content and Description Below

SECTION A Answer ALL questions. Write your answers in the spaces provided. Some questions must be answered with a cross in a box . If you change your mind about an answer, put a line through the bo... x and then mark your new answer with a cross . You are advised to spend 25 minutes on this section. Use the data to support your answers where relevant. You may annotate and include diagrams in your answers. 1 In March 2020 the Monetary Policy Committee (MPC) of the Bank of England reintroduced its quantitative easing programme. (a) Which one of the following is the most likely effect of this quantitative easing? (1) A A fall in economic growth B A fall in the rate of inflation C An increase in the money supply D An increase in unemployment The MPC of the Bank of England also cut the UK’s base interest rate from 0.75% to 0.1% in March 2020. (b) Explain one likely impact of a decrease in the base interest rate on inflation. (3) .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... ............................................................................................................................................................................................................. [Show More]

Last updated: 1 year ago

Preview 1 out of 32 pages