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Consider a scenario where the Bank of England forecasts the UK economy will be overheating and is attempting to slow the economy down using monetary

Consider a scenario where the Bank of England forecasts the UK economy will be overheating and is attempting to slow the economy down using monetary policy to increase the interest rate. What would be the impact on the pound sterling?

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To slow down economy by using monetary policy to increase the interest rate we use the measure called contractionary monetary policy Now let us first ... blur-text-image

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