Video on Interest Rates

In this video, I have a look at the effect of a cut in interest rates.

I mention 3 reasons why lower interest rates will increase AD and therefore economic growth.

Note: I could have mentioned more. For example, lower interest rates, reduce hot money flows and reduce the value of the exchange rate. A lower exchange rate helps to boost exports and therefore AD.

I also introduced some evaluative points. The effect of a cut in interest rates depends on many variables.

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See also: Explaining lower interest rates
(will get a microphone to improve sound quality, soon)