SEARCH
You are in browse mode. You must login to use MEMORY

   Log in to start


From course:

Economics A Level

» Start this Course
(Practice similar questions for free)
Question:

Why does the MPC need to look 2 Years into the Future for Interest Rates? [Use % Rates Falling]

Author: go kys



Answer:

-Reducing Interest Rates won’t cause an AD Surge -Firms will Plan Investment Projects Carefully - so Months or Years until they Spend -House Buyers need Time, as People need to Look Around for a Home, and actually Finalise the Purchase. Fixed Rate Mortgages won’t feel anything until the Fixed Rate Period ends


0 / 5  (0 ratings)

1 answer(s) in total

Author

go kys
go kys