Evaluate the microeconomic and macroeconomic effects of high interest rates in Ghana, or another developing country of your choice

Edexcel A-Level Economics Paper 3 June 2024 Insert

Evaluate the microeconomic and macroeconomic effects of high interest rates in Ghana, or another developing country of your choice. (25 marks)

Plan

  • Paragraph 1
    • Argument: one microeconomic effect of higher interest rates is an increase in costs for firms 
    • Diagram: increase in costs for firms 
    • Evaluation: businesses without loans would be unaffected
  • Paragraph 2
    • Argument: one macroeconomic effect of high interest rates is slower economic growth 
    • Diagram: decrease in AD 
    • Evaluation: depends on the state of the economy 

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