Inflation - A rise in average prices over time, M.E.P. Objectives - The economic goals which the government hopes to achieve, M.E.P. Instrument - The method of intervention in the economy, Rate of Interest - The reward for capital, the price of borrowing and the reward for saving, Exchange Rate - The price of one currency expressed in terms of another, Currently 1 Euro = £? - £0.86, Current Rate of Interest - O.5%, Target rate of Inflation in UK - 2% (+/- 1%), C.P.I. Rate in Jan 2011 - 4%, R.P.I. rate in Jan 2011 - 5.1%,

macroeconomic match up march 2011

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