Edexcel Economics Unit 6 - ULTIMATE REVISION THREAD

Hour and forty-five minute paper, I would do hour essaying and an 45 mins on data responsing.

25 minutes of 40 marker
35 on 60 marker

Remember the essays go:

3 analysis 2 evaluation and 4 analysis and 3 evaluation for the 40 and 60 mark essays respectively in order to access "5*" level.

anyone fancy putting up some revision notes on a public sector net cash requirement?

anyone fancy putting up some revision notes on a public sector net cash requirement?

The adavatages of goverment borrowing
1. By borrowing and building things like roads and proving better education or health for the people it can speed uo futuer economic growht
2. The higher expenditure(G) might prevent a fall in national income
3. Borrowing prevents the govenment from having to raise taxes now.

The disadvantages of goverment borring
1.when the government borrows it tends to increase the rate of inflation rate and croud-out private investment.
2. The sum borrowed has to repaid. it's hard to raise the tax...
3. when the government repays its earlier borrowings, whatever sum it repays cannot then ne spent on what is deemed important at that time.
4. To some extnet, the dis/advantage on wht the government decides to spend the borrowed money and how effectively....

Hm... i quite rush to write but... that is only i can say....
hope i give u some help... take it easy..

Can someone briefly explain what and how crowding out works?

Thanks

NEWLIFE u contradicted urself
"Your point about the pound depreciating post a fall in competitiveness would be second round effects, and hence worth less credit."

then

"the best 4 impacts to describe, post a fall in cometitiveness IMO are:

-Depreciation of the pound."

Can someone briefly explain what and how crowding out works?

Thanks

my teacher explained some today. The government, when needing to borrow may issue bonds at attractive rates of interest. Consumers may choose to invest in these bonds rather than in the private sector, thus causing the private sector to 'crowd out'.

Evaluation - Investment from the private sector may not fall following a crowding out effect in this case, since the Government has increased spending, and so firms should anticipate increases in Demand. Thus Firms will increase investment accordingly

I'm so nervous! It's just wondering which topics will come up, especially for the essay. I would like a question on the causes and effects of something macro. I'm also worried about the data response, which not many people on here seem to be. So many marks to do in 50 mins, way more than we've had to do in any other data response unit.