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Monetary Policy - Coggle Diagram
Monetary Policy
objectives
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in recent years quantitative easing has been used to put more money into the economy to encourage consumption and investment
general stuff
exam tips
When the exam question asks you to analyse, you should demonstrate the ability to present logical chains of reasoning based on knowledge and application. It involves the use of economic terms.
effects
Although we are treating spending, borrowing, saving and investment separately, there is consider overlap between them.
Definition:
a policy that aims to control the total supply of money in the economy to try and achieve the government's economic objectives, in particular price stability
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economic growth
reduced
increased spending, output and employment
price stability
increased
reduced spending, so more price stability
low employment
reduced
increased spending, output and employment
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