Monetary Policy
Central bank action controlling money supply/interest rates to influence economy.
Real World
When the Bank of England raised interest rates from 0.1% to 5.25% between 2021 and 2023, mortgage costs surged and consumer spending fell, hitting retailers like ASOS hard as discretionary purchases declined.
Exam Focus
Always chain the effect: interest rate change → borrowing cost → consumer/business spending → named business impact.
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