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

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mail(at)econoimcshelp.org

2,536 thoughts on “Ask an Economic Question”

  1. My question is not with reference of a state bound currency, but like lets say the population on earth just increased by a significant amount in very short time period. Like an increase of 7 billion people in one day. How would currency be stabilized if the daily necessities of food water and shelter are provided and are in abundance. This may seem a totally illogical question but I am just an author and need this reference for one of my scenarios. And I am a science student so please use simple language or explain any terms you may use

    Reply
    • Thanks for the question

      The country’s currency wouldn’t be stabilised there would be a high level of inflation as domestic demand for money increases, there can be low-level inflation if the foreign investor invests in that country – macro level

      The pharmaceutical,food, bank, and many necessary commodities and manufacturing companies will start to boom if there is adequate planning and distribution of resources, in order for the economy to survive that has to be stable political conditions

      Reply
  2. If the Central bank raises interest rates investment falls because it becomes more expensive to borrow.

    At the same time rising interest rates increases savings and foreign investment coming into the home country. Shouldn’t investment rise if more money flows into the country seeking an investment project?

    Thank you in advance

    Lukas

    Reply

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