When you are evaluating monetary policy, could you say that there will come a point that consumption cannot fall any further because people are only buying inelastic necessities- or is that so unlikely to happen that you can't mention it???

ig to expand on ur point u could say that it depends on what the cause of inflation is. Contractionary monetary policy will only be fully effective if there is demand-pull inflation. If the inflation was caused by supply shocks (such as in the past year), then although inflation will be reduced, there's likely to be a huge unwanted fall in output, which could lead to a recession.

and then the recession could be the point where consumption can't fall any lower without seriously harming living standards

(edited 11 months ago)

Reply 84

Tomm.

7

I don't see why you shouldn't mention it! Other evaluation points may include banks may be unwilling to lend, banks may not pass on the base rate, and lowering interest will only really be of value if consumers are confident (as if they are still sceptical about the economy they will further delay payments, causing a deflationary spiral...); all of these points prove that the monetary policy will not have the intended consequences. The first 2 points are useful evaluations for when interest rates are increased.

Original post by f.mansfield

When you are evaluating monetary policy, could you say that there will come a point that consumption cannot fall any further because people are only buying inelastic necessities- or is that so unlikely to happen that you can't mention it???

Reply 85

SumayyahRashid

4

How are you guys feeling about tomorrow?

Reply 86

edi_00

1

Original post by SumayyahRashid

How are you guys feeling about tomorrow?

The only exam i'm worried about

Reply 87

SumayyahRashid

4

What's the chance of Section B being based on development? The 2020, 2021 and 2022 section B were all linked to development

washmour

Original post by SumayyahRashid

What's the chance of Section B being based on development? The 2020, 2021 and 2022 section B were all linked to development

Could be, but I'm thinking it might be in paper 3

Reply 90

holyguac

11

Original post by amcecon

Could be, but I'm thinking it might be in paper 3

agreed .

do we think financial markets is going to come up

Reply 91

raj2701

8

Original post by holyguac

agreed .

do we think financial markets is going to come up

Has to, as much as I don't want it there, the spec is coming to an end and I don't think they have asked about financial markets so far, but maybe QE will be what they focus on.

I just hope it isn't like paper 1 with both of them on financial markets just imagine QE one side and CDO's on the other.

(edited 11 months ago)

Reply 92

SumayyahRashid

4

Original post by raj2701

Has to, as much as I don't want it there, the spec is coming to an end and I don't think they have asked about financial markets so far, but maybe QE will be what they focus on.

I just hope it isn't like paper 1 with both of them on financial markets just imagine QE one side and CDO's on the other.

QE has come up as the 25 marker twice before i think

Reply 93

thebiggestfish

1

Guys apparently people that do Economics and Geography sit the economics exam in the morning at like 9:15 or something, how does that work? cant they just tell us whats on the paper?

Reply 94

SumayyahRashid

4

Original post by thebiggestfish

Guys apparently people that do Economics and Geography sit the economics exam in the morning at like 9:15 or something, how does that work? cant they just tell us whats on the paper?

Whilst that would be great lol, they're considered clash candidates. That means that they have to stay in school under observation until their next exam which prevents them from leaking info about the exam

(edited 11 months ago)

Reply 95

toxicgamage56

Universities Forum Helper

19

Original post by SumayyahRashid

Whilst that would be great lol, they're considered clash candidates. That means that they have to stay in school under observation until their next exam which prevents them from leaking info about the exam

Yeah nah, someone could just go to the toilet and leak the answers using their phone. They're not exactly doing strip searches and it's not legal to stop someone from using the bathroom.

(edited 11 months ago)

Original post by toxicgamage56

Yeah nah, someone could just go to the toilet and leak the answers using their phone. They're not exactly doing strip searches and it's not legal to stop someone from using the bathroom.