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c11 ; MACROPOLICIES - Coggle Diagram
c11 ; MACROPOLICIES
2.FISCAL ; Use tax & G expenditure
G expenditure increase
cash in consumer increase
purchasing power increase
subsidies increase
econs expand
tax increasing
cash decrease
purchasing power decrease
income burden increase
econs slow down
G expendentire decrease
tax derceasing
MONETARY . use BNM to control money supply
to solve UE
open market - purchase bond
BNM by bond
people receives cash
purchasing supply increase
economy expand
lowering reserve req (syarat)
BNM lower reserve req
MS in CB increase
CB can offer more loans to consumers
cash increase in consumer
purchasing power increase
econs expand
lowering discount rate
lower discount rate
CB can borrow more money
CB can offer more loans to consumers
purchasing power increase
econs expand
lowering interest rate
BNM persuade CB to lower its interest rate
purchasing power increase
CB can offer more loans to consumers
econs expand
to solve inflation ; contractionary
increasing intrest rate
invresing
close market - sales bond
BNM sell bond to people
MS decrease
purchasing power decrease
economy slowdown