Ask an Economic Question

You are welcome to ask any questions on Economics. Though you might also like to try google custom search (top right) to see if the topic has been covered before.

I am looking to explain economic principles / ideas/ recent developments in economics. I can’t promise to answer, but will try if it meets the criteria below.

  • Please don’t ask me to do your coursework / assignment e.t.c. (I can usually tell if it is a homework question!)
  • Please don’t ask any maths calculations.
  • The question and answer will be published here where everyone can see it (including your teacher!)
  • I aim to try and simplify economics; as a rough guide I would aim at an understanding similar to a good British A Level student.
  • I am looking to explain economic principles / ideas/ recent developments in economics.
  •  I will answer as a new post, if you leave email address, I’ll usually send quick email. Check home page of blog for new post. With question and answers

Add comment at bottom of post.


1,126 thoughts on “Ask an Economic Question

  1. The path of UK total debt has been something that has concerned me while reviewing the UK political parties’ manifestos and there are some issues I am unclear about:
    1) Is a fiscal stimulus effective if it causes inflation and the central bank raises rates to counteract the inflation?
    2) How important is the choice of investment for the effectiveness of a fiscal stimulus?
    3) At what ratio of debt to GDP do we risk bond yields rising due to either perceived default risk, running out of buyers for gilts, inflation/currency risks if our international creditors perceive that debt monetisation is required to deal with the burden?
    4) The UK economy has not been in recession since Q2 2009 so we are probably due another recession. Isn’t it a risk to increase borrowing now when a recession could come at any time and force us to borrow more?

  2. Hello,

    I have to plot the trend of the inflation rate of one country against that of 4 other countries, from the years 2000-2016.

    When plotting these trends, do I plot the inflation rate for each month of each year? Or, the annual inflation rate for each year?

  3. Interest rates will only affect business investment if that investment is financed by borrowing. – False

    Explanation: A rise in interest rates raises the opportunity cost of using internal funds to finance investment.

    Kindly elaborate and explain further. This is part of MY CIMA Business Economics questions.

  4. look what rubbish to just confuse we the people. there’s no money. read money mechanics . the bank of England is a private for profit corporation who it’s masters control the people by debt cycles. the IMF BIS world bank and every other national bank is owned and operated by the rothchilds Schiff rockerfella elite bankstets. don’t be surprised what you think the world appears like is smoked and mirrors and legalese has been used to usurp the national debt which you the enslaved are security for the national debt through covert means of deception through tacit I.plied consent a wise man once said if man has no knowledge of how to organise his defence in a court of record then so be it. meaning for ts of their currency the lawyers and barristers who are all on license given for them to con the masses for the crow corporation to control the very peoe that they breach the trust of the people and act against the best interests of the people so we live in a controlled UK not free; your told what to do; when to do and people need to wake up and smell tyranny going on in open view created and masterminded by the elite who are the private for profit organisation the crown corporation UK which abuses mankind inalienable rights to freedom property and free speech is being suppressed by false flags; covert opetions to steal people’s labours from the wake up people the charts in these online schemes lists debts are owed to separate institutions lol these are owned by the very same elite families that every national bank bank bar three in the whole world is owned and operated by the rothchilds
    do a search and see and for God’s sake wake up Britain sovereignty is nearly ovarian I alienable rights go and stand up ; reclaim your individual inalienable rights and start to learn how to beat the great deception that has taken man’s inherent inalienable rights from them by stealth, lack of education to teach the rights and fteedome to liberty by the crown corporation is destroying society . this is written bycan authoritu on fiat/ fractiknal reserbe currency creation and listen up you are being taken for fools.
    a friend

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