Merit:
P4 Explain how both fiscal and monetary policy decisions have affected a selected business
M2 Analyse the effects of fiscal and monetary policies for a selected business in terms of the market it operates in
D2 Suggest and justify elements of fiscal and monetary policies that would help a selected business achieve its objectives.

P4
M2
D2
Explain how both fiscal and monetary policy what it is? And decisions have affected my business
Use news stories from the BBC website to gain merit.
Merit:
Explain how both fiscal and monetary policy what it is? And decisions have affected my business
Use news stories from the BBC website to gain merit.
Fiscal Policy:
Impact of the government spending and taxation on the UK economy.
1) Welfare
2) Health
3) Education
4) Defence - Army
5) Infrastructure
Government taxation, how money is raised.
1) Income tax
2) National Insurance
3) VAT - Products
4) Corporation Tax
Monetary Policy
Impact of interest rates and the money supply on the economy
Bank of England decided on interest rates not the government.
Current interest rates is 0.5% for 5 years High Low
Savings Up Down
Loans Down Up
Mortgage Up Down
Spending Down Up
UK Economy Down Up

D2 – Suggest and Justify – Monetary and Fiscal Policy decisions that would help your business.
Add news stories, concepts, international economy news or any other evidence to support the objectives of your business:
Identify your business objectives
Vat decrease?
Poorer in society paying less tax or richer paying less tax?
Higher benefits/lower benefits?
Lowering interest rates to help your business? Does it work?
Government helping to fund small businesses?
They create more Jobs and let people off the dole into employment, more jobs available. Quantitated meaning: Printed more money to give out into the country. Germany gave their people more money and they burnt it because it was cheaper than actual firewood to use on a fire than spending out because all the prices raised up.
Government Spending More – Multiplier Effect:
When the government spends money on a project it makes a multiplier effect, what it does is effect the businesses and people in a specific area (Runcorn Bridge is congested make take investors off the idea of building in the area) The government are building a new bridge alongside Runcorn bridge to employ building companies to create jobs and give money to the workers they will go out to the local town and spend more money there, but overall it will make the millions put in from the government back from investors. GDP goes up by this. Practically a knock on effect.