Search over 10,000 free study notes

A fall in interest rate will affect consumption, investment and exports-imports.Firstly as interest rates fall, it becomes cheaper to borrow money and it becomes less profittable to save money, therefore ...

A negative externality is a spillover cost affecting a third party from an economic transaction.A negative externality that arises from fuel consumption is the air pollution affecting the health of the po...

By merging a firm will grow in size allowing to benefit from economies of scale as the average cost of producing is reduced. In the case that the merge is horizontal the firm will gain market share as wel...

There are many government objectives that maximize economic growth. Most common ones are Fiscal Policy, Monetary policy and supply side policy. Fiscal Policy is the decisions made by the government on spe...

An externality is the cost or benefit of an economic transaction to any party that was not part of the economic transaction. Examples would be the negative cost on society of smoking through second hand s...