Pearson Edexcel Level 3 GCE [Economics A Advanced Subsidiary PAPER 2: The UK Economy – Performance and Policies]

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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 quantitativ... e 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) ............................................................................................................................................................................................................................................. 2 The table below shows the UK’s nominal Gross Domestic Product (GDP) and population, 2016 to 2018. Year GDP (£ millions) Population (millions) 2016 1995478 65.6 2017 2033234 66.0 2018 2061408 66.4 (a) Define the term ‘nominal’. [Show More]

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