You are welcome to ask questions on Economics. However, due to volume of questions, I can no longer promise to answer all questions.
I will post the answer on this blog, for everyone to benefit from.
I shall try to answer the economics question and / or point to other resources but please bear in mind.
- The replies will be guidance and not for duplication. Your essays should be your own work.
- My speciality is economics for British A Level standard. My university economics is rusty in parts, because generally I don’t use it in teaching A level economics.
- I can’t guarantee to always give full answers it also depends on my time schedule.
- I will answer as a new post. Check home page of blog for new post. With question and answers
- Generally, I don’t answer questions, which involve mathematical calculations, they tend to be doing someone’s homework. however, I may give examples, of calculations, if I think it helps explain economics principles.
I studied PPE at Lady Margaret Hall college, Oxford University, and currently work as an Economics A Level teacher. I have also examined several different economic units for Edexcel AS and A2.
Related
- The first Readers Questions has had over 150 comments.
- Readers Questions II
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how does the decline in economic growth in the UK affect the housing sector?
Hi, can you help me;
i have been asked to find out the following.
“Globalisation effect in the UK’s Organisations and Stakeholders” any ideas???
Hi,
Would you be able to explain the formation of Trading Blocks’ and its impact on International Business? Take 2 trading blocks in the world to explain.
Thank you!
Please could you write something about supply and equilibrium (for price changes in the market), elasticities, optimal production (for both price taking and price making situations), price strategies for price making situations for housing in UK?
(need that for tomorow .. 🙁 )
what are the risks the nation may get after it ha missed the inflation target?
measures taken to reduce unemployment in india
Do other countries debt figures include the same liabilities as UK, pensions, ppp etc?
hi!
I am posting a small write up, just want it to be proof checked
conditions and causes of money supply and interest rate
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If money supply increases and interest rates dip
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there is a danger of inflation running in, because people would be encouraged to borrow money from lending institutions at a very low
rate and this would cause the business supply to spur. This would drive the economic engine and employment would rise.
However continued growth at a un-sustained growth can lead to inflation, a condition where there demand for goods at some point would be more
than supply driving up the price. This causes the price of items to rise, the value of currency would fall as it would require more money to buy a single item.
Inflation if kept under check is a good thing, however if uncontrolled then there is a chance of something called hyperinflation which is excessive money supply and
high demand driving the value of currency to near zero.
if money supply increases and interest rates increases
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If the money supply increases while the interest rates go up, then the reaction towards the economy would be a mixed one.While high interest rates would drive down
inflation(assuming high inflation is the issue), the money supply would try to ease the circulation. Depending on the state of economy, if there is high inflation existing resulting
is growing un-employment, then there is bound to be a decrease in the Aggregate demand, and people would tend to save more and spend less.This would
drive down the consumption of goods and they would tend to go down. However as this happens un-employment would further rise as less demand is dwindling.
If supply of money is more and aggregate demand is less than the value of currency would tend to go up. Exports would dry and imports would ease. Prolonged
durations of this phase may cause heavy deflation.
If Money Supply decreases and interest rates go up
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This is a case of extreme deprivation for the economy, a perfect recipe for the bringing down hyperinflation or excessive inflation. If the supply dries out and the lending
borrowing of money decreases then inflation would drastically come down. People would be restraint from spending money. value of currency would be stabilized.
If Money Supply decreases and interest rates go down
********************************************
If Money supply is gone down, the government must lower the ir to fire up the economic engine. Lower money supply means lower jobs and lower output, higher unemployment.
Doing so would revive the economy during which business would spring into action, people would buy houses and exports would go down. imports would increase and
the value of currency would tend to rise.
I would like to know the full explaination of Expansionary Discrectionary fiscal policy and its effects on the economy, as i am doing an essay for this and it is so hard to nail down exactly. Thank you regards John
hi, i just want to ask about the reasons behind the chinese current account surplus and the solutions that can be done.
I am researching changing currency exhange rates and was hoping to get a professional opinion on when in 2009 would be the best time to buy US dollars.
Hi Tejvan
I’d like to ask you about routine ways (apart from so called “printing new money”) by which the total volume of money in economy grows.
Governments or central banks “print new money” apparently only rarely, but given the fact of almost persistent inflation throughout decades, the total volume of money in the economy must grow persistently and significantly anyway.
If a central bank lends money, does it (in normal circumstances) always only turn the central bank’s cash into central bank’s (loan) debtors? Is it really absolutely unusual that by giving a new loan a central bank at the same time also increases its assets and capital (i.e. makes a capital injection into its cash, increasing that way its cash rather than using only its old cash to give a new loan)?
Also, when we are talking about “printing new money”, does it only mean issuing new money for the government expenses rather than only for the central bank’s loans, new money being issued in that or other way anyway?
Thank you very much in advance for your kind answer.
Hi, i keep hearing the word recession everywhere i turn. As i understand a recession is 4 quaters of negative growth. This is yet to occur, as official stats have not shown this..
So what i am asking is that are we officially in a recession?
The UK anyway
Hi, if the Dollar drops will it effect the Middle east who are pegged with Dollar and Gold will also be take a bull run,because gold is most preferred asset in Asia,Africa&Middle east I think people should buy more gold as secured asset always cash in hand,can you tell is Euro good or Gold to get in.
Hi, Please advice me that shall i buy Euro or Gold as Dollar is very uncertain and I Live in middle east and we are pegged with Dollar.