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Discuss how lower interest rates can affect an economy such as the UK.

Interest rates are payments made when repaying a loan, and are also the reward for saving. Lowering them, should, disincentivise saving and encourage spending. Lower interest rates will increase consumers' d...
AM
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Evaluate measures that could be pursued by individual firms and by the government to reduce a current account deficit (30)

The current account on the balance of payments measures the inflow and outflow of goods, services, investment incomes and net transfers. A deficit on the current account means that the value of imports is gr...
DS
Answered by Dhylon S. • Economics tutor
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Macroeconomic policy can both be a problem and a solution in economic fluctuations. Explain.

Macroeconomic policy, which is a term to describe fiscal policy and monetary policy, can often be a problem during economic fluctuations. Greece is a good example of this. As a result of their sovereign debt...
RD
Answered by Rishav D. • Economics tutor
5723 Views

Explain the possible causes of deflation in an economy. (15)

Deflation is defined as the fall in the general price level of an economy. It is negative inflation. It is usually calculated using the consumer price index (CPI) which measures changes in the price level of...
EW
Answered by Edward W. • Economics tutor
17186 Views

Why does the supply or demand curve not shift when the price changes?

Shifts in the supply and demand curves are only caused by changes other than price changes. Price changes only cause a movement along the demand or supply curve. This is because at higher price levels a cons...
DH
Answered by Dina H. • Economics tutor
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