Top answers

Explain how a reduction in interest rates affect AD.

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 inter...
RC
Answered by Rohil C. • Economics tutor
3586 Views

Evaluate the view that a depreciation of a nations currency, will always be a benefit to it's economy.

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. T...
MM
Answered by Michael M. • Economics tutor
3792 Views

What is the meaning of the term ‘Wealth Effect’?

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 Consumer E...
ED
Answered by Emily D. • Economics tutor
2862 Views

Calculate the coupon rate for a 5 year £500 bond that has a coupon value of £10

(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%
LC
Answered by Laura C. • Economics tutor
3625 Views

What is consumer surplus? Why is it important?

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 paid ...
HG
Answered by Hemal G. • Economics tutor
3288 Views