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C11 : MICROECONOMISC POLICY - Coggle Diagram
C11 : MICROECONOMISC POLICY
MONETARY: BNM control the MS
UE: EXPENSIONARY MONETARY
lowering reserve req
BNM lower deserve
increase cash and CB (receive more cash)
CB can offer more loans to household
MS increase
lowering discount rate
CB can offer more loans to household
MS increase purchasing income
CB can borrow with lower cost
econs expand
discount rate decrease
open market, purchases mall
BNM buy bond from firm
purchasing power increase
money supply increase
econs XTVT expend
. lowering interest rate
CB can offer more loans to household
MS
BNM persecute CB to decrease
cons expand
INFLUATION : CONTRSCTIONSRY MONETARY
close market - sell bond
MS decrease
purchasing power decrease
household will decrease their cost
econs contract
BNM sell bond to household
FISCAL: tax & G expenditure
UE
DECREASE TAX
burden in household income reduce
increase cash
purchasing power increase
econs expand
increase G expenditure
income portion for consumptions increase
purchasing power increase
subsidies increase
econs expand
INFLUATION: contractionary fiscal
increase cash
purchasing
burden a household income increase
econs contract