More cards in this set

Card 6

Front

... is purchasing financial assets called long term loans called gilts. The are designed to directly inject money into the economy . The wealth effect will increase spending, boosting aggregate demand. Households will have portfolios with high value

Back

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Card 7

Front

... fiscal policy means cutting tax or raising government spending or a combination of both

Back

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Card 8

Front

... fiscal policy means tax is greater than government spending

Back

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Card 9

Front

If Government Spending (G) is greater than Tax (T), the government has a budget ...

Back

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Card 10

Front

If Tax (T) is greater than Government Spending (G), the government has a budget

Back

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Card 11

Front

Direct ... has a greater impact on aggregate demand whilst indirect ... affects aggregate supply

Back

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