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Three other Government policies remain, although two of them are not really policies under the direct control of modern governments any more!
An interest rate is the cost of borrowing money. Clearly this is very important to anyone who has borrowed large sums of money! As such, the level of interest rates in a country will affect the behaviour of businesses, workers and consumers. In this chapter you will look at this idea and you will also look at the role played by the Bank of England.
You will also need to understand the importance of exchange rates - the amount of foreign currency you get for £1.
Finally, you will look at the ways in which the UK Government attempts to control business through “ownership” policies i.e. Public Sector services and “Public Private Partnership” schemes.
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