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Economics 2.2.1 - Coggle Diagram

- - - - a fall in real wealth will result in a fall in consumer spending
      - borrowing money becomes more expensive because there is a fixed supply
      - when prices increase consumers need more money to buy the same number of goods and services as before
    - - rise in interest rates makes saving more attractive and spending less attractive
    - - increase in government spending leads to more spending in the economy
    - - when prices increase, imports become more competitive and so imports increase
    - - when prices increase, exports become less competitive and so exports decrease