Interest Rates and the Economy
Examination of how changes in interest rates affect consumption, investment, exchange rates, and aggregate demand.
Key Questions
- Analyze the incentives low interest rates provide for household saving.
- Predict the impact of a sudden rise in the base rate on different sectors of the economy.
- Explain how interest rate changes influence the exchange rate and international trade.
National Curriculum Attainment Targets
Suggested Methodologies
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