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Explain how interest rates could be used to stimulate a rise in inflation.

Interest rates, which represent the cost of borrowing money and the returns from saving it, are used by central banks to control the level of inflation. If the central bank wants to increase inflation, it wi...
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Answered by Ben B. • Economics tutor
4021 Views

Analyse the effects on the UK economy of a recession in another economy with trade ties.

A recession is when an economy experiences negative growth in terms of GDP for two or more consecutive quarters. If an economy such as that of the US, a major trading partner, were to enter a recession it co...
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Answered by Luke J. • Economics tutor
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What is price elasticity of demand and how does it affect equilibrium prices and quantities?

Price elasticity of demand is a measure of the relationship between the quantity demanded for a good and the price of that good. We are more concerned with the coefficient of the change and not the direction...
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Answered by Josh M. • Economics tutor
7251 Views

How do barriers to entry help monopolies maintain power?

A monopoly is a firm with a majority market share in a particular industry. Barriers to entry are things that stop potential new entrants from entering the market, thus keeping competition in monopolistic ma...
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Answered by Navjyot D. • Economics tutor
9958 Views

What kind of effect would a national minimum wage have, is it positive or negative ?

A national minimum wage sets the minimum hourly wage rate that is acceptable by law. It is needed for a variety of reasons. It has several advantages including reducing poverty and reducing gap between rich ...
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