Question 3

9 marks
Content - 2 marks
Application - 2 marks
Analysis - 3 marks
Evaluation - 2 marks
Content
1 mark - Defines the term interest rates or gives one impact of an increase in interest rates
2 marks - Defines interest rates and gives one impact or gives two impacts
Application
1 mark - Limited application
2 marks - Good application
Analysis
1-2 marks - Limited analysis
3 marks - Good analysis
Evaluation
1 mark - Limited evaluation
2 marks - Good evaluation

Possible answers
Interest rates are the price of borrowing money
If interest rates rise Pete may have to pay back more for his loan therefore decreasing his profits
If interest rates increase people will have less money to spend and therefore any non essential work plumbing work may be put off decreasing his revenue
If interest rates rise it will mean that people are less likely to move house so any jobs on new houses will decrease