How does the Government finance its Borrowing?

The UK government has a national debt of over 55% of GDP. It finances its debt by borrowing from the private sector. Its debt is managed by the Debt Management Office DMO 1. By issuing government bonds (gilt edged stocks) demand comes mainly from non- bank financial sector e.g. insurance co. i) e.g. Treasury 10% …

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 AQA A Level Economics Syllabus

European Union For AQA Unit 4 Origins of the EU Economic Integration Single Market What it involves Efficiency of the Single Market Common Agricultural Policy Reform of the CAP Expansion of the EU Monetary Union What it involves How it affects Monetary Policy Impact of European wide inflation targeting and interest policy Arguments for Against …

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 Economics Study Help

Free general advice for Studying Economics Learn the basics first. You can answer a lot of questions just through mastering supply and demand questions. Practise Questions. To learn you need to practise and answer questions yourself. Don’t just read the textbook. Reading is a form of passive learning; there is a limit to what you …

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Agricultural Protection  

Agricultural markets have often been the recipients of tariff protection. This involves Tariffs on cheaper imports Quotes on imports Government subsidies to domestic farmers Reasons for Agricultural Protection Farmers have lower incomes than the rest of the population and don’t tend to benefit from economic growth (low income elasticity of demand for food) Farmers often …

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Asset Motive for Money  

People demand money for different reasons. The asset motive states that people demand money as a way to hold wealth. In a period of inflation,the value of money declines and therefore there is unlikely to be an asset motive for money. However, in a period of deflation, money increases in value and therefore there may …

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Asset Prices  

Assets are items that give real value to a firm or an investor. Assets can be real assets such as land, houses, machines or capital. Financial assets include money, bonds and securities. Intangible Assets: Assets can also be intangible. For example, a company may have a loyal workforce or they may have a recognisable brand. …

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Will Cutting Government Spending Bring Economic Growth?

Readers Question: Will Cutting Public spending bring economic growth?Do Countries with lower government spending as a % of GDP have higher economic growth rates? After recent data on -0.7% growth in Q2 2012, several experts offered suggestions for restoring economic growth to the UK. In the Guadian, Sheila Lawlor suggested (link): The UK’s output figures, …

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Question: Can a government borrow rather than cut spending?

Readers Question: Why can’t a debt-crippled and deficit-induced state, go on with its most normal economic activities (by borrowing the needed money to make sure that no or at the most, unproductive spendings are curbed, no tax rates up, and no austerity measures) in a bid to emerge out of debt & deficit potholes sooner …

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