Lower IR does not always cause inflation, if the economy is operating with lots of spare capacity, then an increase in AD from lower IR won’t cause inflation, just a rise in GDP, as firms don’t have to employ more FOP and thus costs stay constant and thus prices stay constant
2025-05-17 17:43:20
192
monkey :
i need to learn all of macro tmr 😭😭🙏
2025-05-17 23:53:30
150
lynn :
do you realise.. you've just saved me?
2025-05-17 14:42:41
197
Lbyhj :
Nah she’s cooking
2025-05-17 14:52:40
327
. :
it didn't come up lil bro💔
2025-05-19 14:54:46
62
nathaniel b :
it didn’t come up 😂😂
2025-05-19 15:15:28
5
Studywsamirr :
Cheers mate
2025-05-19 15:09:55
0
Mik :
Can you eval the wealth effect by saying that all houses will rise in prices by the same proportion so if they sell the house, it will also cost more to buy another one?
2025-05-17 18:13:11
1
MoSlop :
Aged well
2025-05-19 16:37:46
4
Andrew :
Chain of Analysis on a different level 😮💨
2025-05-17 21:57:55
16
moggs :
In terms of foreign demand would this reduce demand for the currency, with less hot flows of money attracted by a high IR, therefore value of the currency reduces, WIDEC- so more international competitive (J curve), then eval with Marshall Lerner and negative effect on imports, with less choice
2025-05-17 17:01:57
10
Bobby :
Didn’t come up at all in aqa
2025-05-19 15:37:48
1
Teesh Teesh :
cool but you wouldnt write this much for a 8 marker. more time efficient to just condense it. better to do this if 15 or 25 marker
2025-05-18 00:01:34
1
Zainab<3 :
Can you say there is a multiplier effect too?
2025-05-19 00:06:51
3
Dhaaib :
absolutely insane please do more I need u
2025-05-18 20:21:40
1
BU$HN♠︎Q :
no it didn't, I read the whole exam even Q 5 which I didn't answer and it didn't come
2025-05-24 17:35:03
0
shakes :
Is central bank reducing/increasing interest rates or repo rate (discount rate)? 🤔
2025-07-01 17:17:55
0
darcy :
transmission mechanism
2025-05-17 14:58:49
0
Moorganic :
does real gdp also increase?
2025-05-17 17:19:16
0
👍 :
will there be more predictions
2025-05-17 15:33:15
0
Huh…. :
It didn’t come
2025-05-19 00:07:44
0
Jp4566 :
How much for the predicted paper 2
2025-05-17 19:47:42
0
emile :
im soooo cooked😭
2025-09-23 05:24:18
0
Jess :
@Emma🌶️🫒🍋🟩
2025-05-18 22:04:15
1
divine🤍 :
@Charlotte 🤎
2025-05-18 15:14:19
1
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