IB skill practice

Evaluate monetary policy

Economics SL macroeconomics skill with original exam-style diagram, data-response, and policy-evaluation seeds.

Paper 1, Paper 2 5 marks Difficulty 4

Evaluate monetary policy limits

A local Auckland policy extract reports that households are worried about jobs even after interest rates fall. Explain why monetary policy may be limited. Enter the answer and choose the interpretation that best matches the macroeconomic evidence.

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