On the day that UK interest rates rise to 5.25%, Evan Davies of BBC news has this great little summary
< http://www.bbc.co.uk/mediaselector/check/nolavconsole/ukfs_news/hi?redirect=st.stm&news=1&bbram=1&bbwm=1&nbram=1&nbwm=1&nol_storyid=6252225 >
In addition, background information from Geoff Riley's blog showing trends in interest rates at
http://www.tutor2u.net/newsmanager/templates/?a=2084&z=1
a) What reasons does he give for interest rates having to rise?
b) Show the effect on an AD/AS diagram
c) What should the positive effects be on the economy (use the diagram!)
d) Not all the effects will be positive. From the clip and the diagram explain the likely negative effects on the economy
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