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C11: MACROECONOMICS POLICIES - Coggle Diagram
C11: MACROECONOMICS POLICIES
MONETARY: BNM control the ms
UE
Lowering reserves req.
BNM lower reserves req
increase cash to CB (receives mre cash)
MS increase, purchasing increase
CB can offer more loans to household
econs expand
Lowering discount rate
Discount rate decrease
CB can borrow with lower cost
Open market - purchase bond
BNM buy bond from household/ firm
household will receives cash
econs xtvt expand
money supply increase
purchasing power increase
INFLATION
FISCAL: Tax & G expenditure
UE
INFLATION