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The Economy - Coggle Diagram
The Economy
Elements used
Credit
Total Spending
Used by
Borrowers
To generate profits
Lenders
To boost their spending limits
Boosts the economy through increasing
Creates
Debt
Too much leads to
Economic Bubble
Deleveraging
Solutions
Cut spending
Reduce debt
Redistribute wealth
Print money
Cash
Organisms
Central Bank
Controls the inflation through lowering or raising interest rates
Higher interest rates cause
Deflation
The economy slows down as spending decreases
Can lead to
Recession
Central Government
Collects taxes and provides financial support when needed
Made of
Simple Transactions
Creates
3 Main Forces
Productivity Growth
Short Term Debt Cycle
5 to 8 years
Long Term Debt cycle
75 to 100 years
Consist of
Seller
Buyer
Exchanging goods and services for cash or credit