Unit 2: Interest rates cut to 1%: What effect will this have on the UK economy?

Economics help has this brief article explaining why the latest interest rate cut might have little effect on the economy

http://www.economicshelp.org/2009/02/pointless-interest-rate-cut.html

In contrast, this BBC clip has evidence that it might work

http://news.bbc.co.uk/1/hi/uk/7872451.stm

These clips show how borrowers and savers are effected differently by the interest rate cut

http://news.bbc.co.uk/1/hi/uk/7872864.stm
http://news.bbc.co.uk/1/hi/business/7873595.stm

a) To what extent do you believe the rate cut may stimulate the economy (Hint: Think about the components of AD and the evidence regarding the effect on each component in the articles
b) Explain how Quantitative Easing might help stimulate the economy