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C11 : MACROECONOMICS POLICIES - Coggle Diagram
C11 : MACROECONOMICS POLICIES
MONETARY : BNM control the ms
UE EXPANSIONARY MONETARY
Lowering reserves req.
BNM lower reserves req.
increase cash to CB ( receives more cash )
MS increase, ourchasing increase
CB can offer more loans to household
econs expand
Lowering discount rate
Discount rate increase
CB can borrow with lower cost
econs expand
CB can offer more loans to household
MS increase, purchasing power increase
Open market
BNM buy bond household
household recieves cash
purchasing power increase
money supply increase
econs xfvt expand
Lowering interest rate
MS increase, purchasing increase
econs expand
CB can offer more loans to household
( BNM ) persuade CB to decrease
INFLATION : CONTRACTIONARY MONETARY
Decreasing the reserves req
3 Decreasing the discount rate
Close market - sell bond
MS decrease
purchasing power decrease
household will decrease for their cash
econs contract
BNM sell bond to household
decreasing the interest rate
FISCAL : Text and G expenditure
UE : EXPANSIONARY FISCAL
Decrease Tax
burden in household income reduce
increase cash
purchasing power increase
econs expand
2 G Increase G Expanditure
subscidies increase
income potion for consumption increase
econs expand
purchasing power increase
INFLATION
Increase tax
decrease cash
purvhasing power increase
burden in household income increase
econs expand
Decrease G expanditure
income household decrease
purchasing power increase
subscidies decrease
econs contract