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Interest rates are the cost of borrowing money expressed as a percentage of the amount borrowed. A reduction in the bank rate by the MPC (Monetary Policy Committee) would result in banks offering lower in...

Firstly, a depreciation of a currency; such as the 'pound sterling' in the United Kingdom, can be defined as a fall in the external value of the currency in relation to another currency of another country...

The ‘Wealth Effect’ is when consumers feel wealthier (e.g. due to an increase in the value of assets such as housing) and therefore feel more confident and spend more. Often resulting in a rise in Consume...

(10 x 5) (coupon value x length of bond) = 5050/500 (previous answer/bond value) = 0.10.1 x 100 (coupon rate as percentage) = 10%

Consumer surplus is an important concept in economics. Essentially, it is the extra amount that a consumer is willing to pay for a given good or service. It is the difference between the current amount pa...