Cambridge International (CAIE) · 5 Government macroeconomic intervention (AS) · 5.3 Monetary policy
Cambridge International (CAIE) Economics past paper questions: Monetary policy
Every Cambridge International (CAIE) question on Monetary policy from 2023 to 2025: 1 essay, 2 data response questions and 7 multiple choice questions. It covers 4.6 Price stability and 5.2 Fiscal policy. Each question links to its paper, mark scheme and examiner report.
Essay questions on monetary policy
Data response questions on monetary policy
Case study: Dilemma for the European Central Bank (ECB)
Case study: Inflation in the United States (US)
Multiple choice questions
- AS Paper 1, November 2025, Q19
A central bank is asked by the government to help achieve price stability. If inflation rises steeply, which policy will not be directly within the control of the central bank?
- AS Paper 1, November 2025, Q21
What is an example of expansionary monetary policy?
- AS Paper 1, June 2025, Q21
What is likely to be an expansionary monetary policy?
- AS Paper 1, March 2025, Q23
A country’s central bank decides to reduce the level of credit regulation. What is this an example of?
- AS Paper 1, June 2024, Q21
The original equilibrium in the economy is represented by point X, the intersection of AD1 and AS1, on the AD / AS diagram shown. The government decreases the money supply. What is the new equilibrium point?
- AS Paper 1, June 2024, Q22
How does a government use its central bank to promote an expansionary monetary policy?
- AS Paper 1, June 2023, Q27
The diagram shows the current equilibrium of an economy. The government introduces a contractionary monetary policy. What is the most likely outcome?
Question text is quoted from the question papers, © Cambridge University Press & Assessment (UCLES), for students’ private study. Open the official papers and mark schemes from the links on each question. Examiner insights are written with AI assistance and moderated by Finn.