Question:
Why does the MPC need to look 2 Years into the Future for Interest Rates? [Use % Rates Falling]
Author: eric_galvaoAnswer:
-Reducing Interest Rates won’t cause an AD Surge -Firms will Plan Investment Projects Carefully - so Months or Years until they Spend -House Buyers need Time, as People need to Look Around for a Home, and actually Finalise the Purchase. Fixed Rate Mortgages won’t feel anything until the Fixed Rate Period ends
0 / 5 (0 ratings)
1 answer(s) in total