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Question and answer: International trade and protectionism

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Franchises, natural monopoly and the Post Office computer scandal

EXAM-STYLE QUESTIONS

Questions on interest rates and investment

Steve Stoddard presents a series of exam-style questions on topics covered in articles featured in this issue of ECONOMIC REVIEW. Answers to these questions can be found online at ECONOMIC REVIEW Extras

Table 1 Interest rates and investment levels in an economy, 2018–23 (* as set by central bank)

1 Using only data from Table 1, calculate the percentage change in investment between 2018 and 2023 to one decimal place. (2 marks)

2 Using evidence from Table 1, to what extent do the data show that cuts in interest rates lead to increases in investment? (4 marks)

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Previous

Question and answer: International trade and protectionism

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Franchises, natural monopoly and the Post Office computer scandal

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