Determinants of Aggregate Demand (AQA A-Level Economics): Quizzes
📚Quizzes
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10 questions from this quiz
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Practise the questions
10 questions from this quiz
If nominal interest rate is 4.5% & inflation is 6.2%, what is the real interest rate?
If nominal interest rate is 4.5% & inflation is 6.2%, what is the real interest rate?
-1.7%
What effect do rising house prices typically have on consumption?
What effect do rising house prices typically have on consumption?
Increase consumption via wealth effect
In economic terms, what does investment (I) specifically refer to?
In economic terms, what does investment (I) specifically refer to?
Firms spending on capital goods
In the accelerator formula , what does represent?
In the accelerator formula , what does represent?
Capital-output ratio
According to Keynes, how does consumption change as income rises?
According to Keynes, how does consumption change as income rises?
Rises but not proportionally to income
What level did UK savings ratio peak at during the Covid-19 pandemic?
What level did UK savings ratio peak at during the Covid-19 pandemic?
Over 20%
How does redistributing income from rich to poor affect total consumption?
How does redistributing income from rich to poor affect total consumption?
Increases consumption & reduces saving
What did the 2007-2008 credit crunch cause banks to do?
What did the 2007-2008 credit crunch cause banks to do?
Stop lending due to fear & bad debt
According to life-cycle theory, when do people typically save most heavily?
According to life-cycle theory, when do people typically save most heavily?
Middle age (preparing for retirement)
What generally happens to savings ratios during recessions?
What generally happens to savings ratios during recessions?
Rise due to uncertainty