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C11 : MACRO POLICIES - Coggle Diagram
C11 : MACRO POLICIES
MONETORY : USE BNM TO CONTROL MONEY SUPPLY
TO SOLVE UE
LOWERING RESERVES REQUIREMENT
comercial bank can offer more loans to consumer
cash increase
MS in comercial bank
purchasing power increase
BNM lower the reserves
econs expand
LOWERING DISCOUNT RATE
lower discount rate
OPEN MARKET OPERATIONS PURCHASE BOND
money supply increase
purchasing power increase
people receive cash
Economy expand
BNM buy bond from people
TO SOLVE INFLATION
2.FISCAL (USE TAX & GOVERMENT EXPANDITURE)
TO SOLVE UE
TO SOLVE INFLATION