I am a 20 year old third year economics student, currently achieving a first class degree at the Univesity of Leeds. Economics and Maths are two subjects that genuinely excite me. My degree allows me to study economics but also still enjoy mathematics modules. I am incredibly calm and relaxed. My history of teaching mainly consist of sports teaching, however also I volunteered at the scouts for 18 months. I have coached football and rugby in the past, thus giving me the transferable skills to help you achieve your aim.
I will allow you to build the sessions around the key areas, with which you believe that you struggle most. With economics I believe that diagrams and real world examples are crucial to a wider and deeper understanding of the subject. For essays, structure is almost equally as important as content and I will therefore give insight in this. In terms of maths, I am of the opinion that experience is the key to understanding, therefore working through questions together allow you to apply the same skills to other questions in the future.
If you have an question or would like to book a session, please do not hesitate to drop me a message. Please also let me know your exam board (as different exam boards will have different curriculum!) and the areas with which you struggle.
|Economics||A Level||£20 /hr|
|Maths||A Level||£20 /hr|
|Before 12pm||12pm - 5pm||After 5pm|
Please get in touch for more detailed availability
This question can be split up into 2 parts. What it is asking for firstly is an outline of what theory says should happen. As the question starts with the word comment, the second part will involve some evalutation.
- An increase in the interest rate is an example of contractionary monetary policy.
- It will increase a firm's cost of borrowing, therefore decreasig investment, and increase incentives to save.
- As the cost of borrowing increases, this increases the opportunity cost of investment as the extra money could have been spent on something else.
- It depends on the size of the change ~ if the change is only small then firms may ignore the increased opportunity cost and go ahead with investment
- It depends on what the rate was in the first place ~ if the rate was already very low then even with an increase in the interest rate, the cost of borrowing may remain low and investment occur.
- If firms are optimistic about future profits they may choose to invest anyway.
- *The REAL inerest rate may have fallen ~ if the increase in interest rate is met by a greater increase in inflation, the REAL cost of borrowing will fall and firms may invest more.
*more complex point.
In this question the evaluation is key to achieving the highest marks.