Official Edexcel Economics A Unit 2:The UK Economy- Performance and Policies - 23 May Watch
- 23-05-2016 17:07
- 23-05-2016 17:19
(Original post by liamlaw1320)
- 24-05-2016 18:22
For the 20 marker I talked about the following:
defined demand side policies
Defined monetary and the fiscal policy
Used interest rates gave the 2009 fall from 1 to 0.5 % then explain the effect this had on the consumer and firm investment
But i evaluated it by saying that it wasn't very effective in the UK due to lack of consumer confidence/ banks reluctant to lend.
Then i talked out quantitative easing gave the example of the £375 billion invested in the UK. Explain how this increased the supply of money etc. meaning institutions are more willing to lend and lower rates and So forth. Maintaining the interest rates/inflation rate and stimulating growth
and went on to evaluate by saying that it was effective used the USA and how if we invested more we could of got out quicker etc. but said that long term it could have inflationary pressures.