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A Government's economic policy - Coggle Diagram
A Government's economic policy
regulate aspects
prevent negative conditions
inflation
unemployment
high competition
2 main ways
respond to activity
fiscal policy
monetary policy
monetary policy
adjust the cost of borrowing money
federal funds rate
target interest rate
rates on debt
consumer loans
credit cards
fiscal policy
adjust spending
government sent money
promote activity
encourage household spending
change tax rates
introduce tax incentives