MYTUTOR SUBJECT ANSWERS

278 views

How can changes in the interest rate affect aggregate demand?

A reduction in the interest rate will increase the incentive for consumers to spend money. This increases consumption which increases aggregate demand.

An increase in the interest rate will increase the incentive for consumers to save money. This reduces consumption which decreases aggregate demand.

Parth P. GCSE Economics tutor, A Level Economics tutor, GCSE Maths tu...

6 months ago

Answered by Parth, an A Level Economics tutor with MyTutor


Still stuck? Get one-to-one help from a personally interviewed subject specialist

67 SUBJECT SPECIALISTS

£30 /hr

James T.

Degree: Economics & Management (Bachelors) - Bristol University

Subjects offered:Economics, Maths

Economics
Maths

“I am currently studying Economics & Management at the University of Bristol, and love working with students of all ages, specialising in Maths and Economics at both A-Level and GCSE. I have been teaching drums and coaching tennis for ...”

£20 /hr

Rebecca M.

Degree: BSc Economics (Bachelors) - Leeds University

Subjects offered:Economics, English Literature+ 2 more

Economics
English Literature
-Personal Statements-

“Hi! I'm Rebecca. I'm a first year Economics Student at the University of Leeds. I have 3 years of previous tutoring experience and I'm excited to share my passion for Economics and English Literature with you. Whether you need assista...”

£20 /hr

Jack G.

Degree: Politics, Philosophy, and Economics (Bachelors) - Warwick University

Subjects offered:Economics, Religious Studies+ 2 more

Economics
Religious Studies
Maths
.TSA. Oxford.

“Hello, I'm Jack and am studying politics, philosophy, and economics at Warwick.  Having recently been through the subjects I'm looking to tutor I feel like I know first hand what difficulties you'll be facing. I always found I wanted ...”

MyTutor guarantee

About the author

Parth P. GCSE Economics tutor, A Level Economics tutor, GCSE Maths tu...
£20 /hr

Parth P.

Degree: BSc Economics (Bachelors) - Bristol University

Subjects offered:Economics, Maths

Economics
Maths

“About Me: I am an economics student in my first year at Bristol University. Economics has always been my favourite A level subject. I regularly keep up to date with economic news around the world. I do not rush and am a good listener...”

MyTutor guarantee

You may also like...

Posts by Parth

Describe the long run aggregate supply curve.

Explain how to solve simulatentous equations.

How can changes in the interest rate affect aggregate demand?

Other A Level Economics questions

If John’s elasticity of demand for burgers is constantly 0.9, and he buys 4 burgers when the price is £1.50 per burger, how many will he buy when the price is £1.00 per burger

What is aggregate demand?

Explain the difference between short term growth and long term growth

Outline and evaluate the economic effects of a fall in the value of the dollar?

View A Level Economics tutors

We use cookies to improve your site experience. By continuing to use this website, we'll assume that you're OK with this. Dismiss

mtw:mercury1:status:ok