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Government Policy and Management · Spring Term

Monetary Policy: Interest Rates

Exploring the role of the Central Bank in controlling interest rates and their impact on the economy.

Key Questions

  1. Explain how a change in interest rates affects a household's disposable income.
  2. Analyze the mechanisms through which interest rate changes influence aggregate demand.
  3. Predict the consequences of making borrowing too cheap or too expensive.

National Curriculum Attainment Targets

GCSE: Economics - Economic PolicyGCSE: Economics - Monetary Policy
Year: Year 11
Subject: Economics
Unit: Government Policy and Management
Period: Spring Term

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