9708_s17_qp_42.pdf - Cambridge International Examinations Cambridge International Advanced Subsidiary and Advanced Level 9708\/42 ECONOMICS May\/June 2017

9708_s17_qp_42.pdf - Cambridge International Examinations...

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This document consists of 4 printed pages and 1 Insert. DC (RW/SW) 130537/2 © UCLES 2017 [Turn over Cambridge International Examinations Cambridge International Advanced Subsidiary and Advanced Level * 6 0 2 6 2 1 1 9 1 3 * ECONOMICS 9708/42 Paper 4 Data Response and Essays May/June 2017 2 hours 15 minutes No Additional Materials are required. READ THESE INSTRUCTIONS FIRST An answer booklet is provided inside this question paper. You should follow the instructions on the front cover of the answer booklet. If you need additional answer paper ask the invigilator for a continuation booklet. Section A Answer Question 1 . Section B Answer two questions. You may answer with reference to your own economy or other economies that you have studied where relevant to the question. The number of marks is given in brackets [ ] at the end of each question or part question.
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2 9708/42/M/J/17 © UCLES 2017 Section A Answer this question. 1 Monetary policy and economic growth Between 2009 and 2014, the central bank of the United Kingdom (UK) used policy measures of quantitative easing (QE) and very low interest rates. The Finance Minister said that monetary policy was the primary tool for encouraging investment that could lead to economic growth. Private businesses, however, said that QE by itself cannot restore confidence in the economy. It needs to be supported by a range of supply-side policies, in particular policies to help small firms access credit. Pension fund companies also did not welcome the policy and said that it penalised those who rely on their savings for income.
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