Please use the grid provided on page two of the Candidate Answer Booklet to record your answers to each multiple  choice question. Do not write out the answers to the MCQs on the lined pages of the answer booklet.
Each question is worth 2 marks.

Which of the following statements is/are correct?
(1) Monetary policy seeks to influence aggregate demand by increasing or decreasing the money raised through taxation
(2) When governments adopt a floating exchange rate system, the exchange rate is an equilibrium between demand and supply in the foreign exchange market
(3) Fiscal policy seeks to influence the economy and economic growth by increasing or decreasing interest rates
A 2 only
B 1 and 2 only
C 1 and 3 only
D 1, 2 and 3
 

Answer:

A

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