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Interest rates are payments made when repaying a loan, and are also the reward for saving. Lowering them, should, disincentivise saving and encourage spending. Lower interest rates will increase consumers...
The current account on the balance of payments measures the inflow and outflow of goods, services, investment incomes and net transfers. A deficit on the current account means that the value of imports is...
Macroeconomic policy, which is a term to describe fiscal policy and monetary policy, can often be a problem during economic fluctuations. Greece is a good example of this. As a result of their sovereign d...
Deflation is defined as the fall in the general price level of an economy. It is negative inflation. It is usually calculated using the consumer price index (CPI) which measures changes in the price level...
Shifts in the supply and demand curves are only caused by changes other than price changes.
Price changes only cause a movement along the demand or supply curve. This is because at higher price l...
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