What are the main tools to used to meet the key economic objective of ecomic growth?

Economic growth is an increase in the real gdp in the economy. One tool that could be used changing the interest rates. Interest rates are the cost of borrowing, and reward for saving. In order to increase economic growth the interest rates need to be reduced. This will encourage people to borrow more money and spend it in the economy, therefore creating growth.
Another tool that could be used is the exchange rates. This is the price of one currency in terms of another. In order to increase economic growth a country should devalue their currency, making exports cheaper. This will encourage foreigners to purchase their exports, and so will boost economic growth

Answered by Victoria R. Economics tutor

1401 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

Please discuss the objectives of macroeconomic policy.


Using a diagram and an example, explain what a negative externality is and why it leads to market failure.


Discuss the view that falling unemployment will inevitably lead to trade-offs with other macroeconomic policy objectives


Please identify and explain the 2 main factors that cause the downward sloping demand curve.


We're here to help

contact us iconContact usWhatsapp logoMessage us on Whatsapptelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

© MyTutorWeb Ltd 2013–2024

Terms & Conditions|Privacy Policy