Questions on Money Supply

Readers Question: supposing a government printed more money but only used it to finance the cost of imported goods, what then would be the effect on the domestic economy? supposing the price of these imported goods was the same as before the extra money was printed, there is just a larger quantity of them now. …

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The impact of Government Borrowing on Industry

The impact of government borrowing on industry. Generally, government borrowing of over 3% of GDP and National Debt of over 60% of GDP is considered to be harmful and if government debt is too high it might start to deter foreign investment. Budget balance This is the amount the government need to borrow from the …

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