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A lower interest rate reduces the return on saving, and as such reduces the opportunity cost of spending - for the only alternative to spending is saving. This increases the incentive for consumers and insti...

Consumer surplus is the benefit to people who want to buy a certain good that comes from the good being cheaper than what the consumer would be willing to pay; in other words, it is the difference between th...

Firstly, we know a negative externality is when the marginal social cost of a good or service is greater than the marginal private cost: in practice, this means that there are third parties (people who are n...

Know your structure well. -Write a short, concise and definition-orientated introduction-Plan 2 or 3 points you want to discuss and briefly jot down chains of reasoning, alongside potential counterpoints -Us...

Expansionary fiscal policy involves increasing aggregate demand (AD) by increasing government spending and decreasing taxation. Lower taxes will increase consumer disposable income which increases their spen...