Pages in this set

Page 1

Preview of page 1
Harry Bindloss




GOVERNMENT SPENDING
Ways to Finance Government Spending:

1. Public Sector borrowing ­ The government will make interest from the banks that are
lending out money. The amount the UK has to borrow when expenditure is more than
incomes from other countries, private banks, private companies etc. are all…

Page 2

Preview of page 2
Harry Bindloss




Opportunity Cost ­ If you spend anything it's at the expense of something else and it
could have been spent on something else.

Education and Health Care ­ YES elastic ­ If income increases you will get better
education and health care.

Multiplier Effect ­ If spending increases…

Comments

No comments have yet been made

Similar Economics resources:

See all Economics resources »