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2.2 Aggregate demand (AD)

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Question 34

Bank of England (BoE) official Bank Rate, October 2008 – March 2009

PeriodBank Rate (%)
October 20084.50
November 20083.00
December 20082.00
January 20091.50
February 20091.00
March 20090.50

With reference to the table above, explain the likely impact of a reduction in the central bank interest rate on UK business investment.

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2.2 Aggregate demand (AD) Questions

  1. A Level
  2. /Economics
  3. /2.2 Aggregate demand (AD)