If a country grants another country a special favour (such as a lower customs duty rate for one of their products), the country has to do the same for all other WTO members.
greater
-Lower interest rates
-Savings decreases
-More confidence
-High profits
-Gains in wealth
-Lower income taxes
-More Government Spending
-Weak currency
-Society attitude toward spending
-Lower price and better choice for consumers.
-Bigger markets for businesses
-Countries can specialise on their comparative advantage
→ Volatile prices makes it difficult to invest and hurts individual finances.
→ Prebisch-Singer Hypothesis suggests that terms of trade will fall over time.
→ Risk of 'Dutch Disease' where exporting an expensive commodity causes exchange rate to appreciate.
-Greater choice
-Lower prices
The AD curve.
Spending in the economy undertaken by the government.
