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economics
Essay specific features
Written by:
Angelina S
Date added:
January 2, 2014
Level:
University
Grade:
A
No of pages / words:
6 / 1469
Was viewed:
968 times
Rating of current essay:
Essay content:
(Toews, 2006) when an economy experiences a growth period, IR is decreased to stimulate the amount of money circulating in the market. Conversely, IR is relatively high when a stagnation or recession occurs.
Figure 1 illustrates the relationship between real GDP which represents the economic grow and IR over 40 years in the UK...
displayed 300 characters
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In the late 1980s the UK experiencing a huge stagnation period and from the figure the IR was high and the gap between IR and real GDP. During the late 1990s the UK economy were growing and the IR dropped. The observations reveal that a high growth will lead to low interest rate and vise versa.
Same as other commodities, there is a market for money...
displayed 300 characters
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