Objectives and Plicies

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  • Objectives and Policies
    • Fiscal Policies
      • Contractionary
        • Disadvatages
          • Unemployment
          • GDP growth slows
        • Advantages
          • Less imports
          • Gov. finance will improve
      • Expansionary
        • Advantages
          • Less Unemployment
          • Rising tax revenus
        • Disadvantages
          • Threat of inflation
          • Rising Imports
    • Monetary Policies
      • Tight
        • Disadvantages
          • High export prices
          • Cheap imports
        • Advantages
          • Less borrowing
          • Cheap Imports
      • Loose
        • Advantages
          • Encourages Borrowing
          • Lowers exchange rate
        • Disadvantages
          • Low exchange rate
          • Worsen Current Account

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