Governments use monetary policy such as increasing the rate of interest. What is a result of increasing the rate of interest?
A.
It creates disincentives for wage earners.
B.
It discourages investment by entrepreneurs.
C.
It reduces the disposable income of consumers.
D.
It reduces government transfer payments.
Exam No：0455_m25_qp_12 Year：2025 Question No：19
Answer:
B
Knowledge points:
4.4.1 definition of money supply and monetary policy
4.4.2 monetary policy measures(Changes in interest rates, money supply and foreign exchange rates.)
4.4.3 effects of monetary policy on government macroeconomic aims
Solution:
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