How_Money_Works_-_The_Facts_Visually_Explained
118 119 GOVERNMENT FINANCE AND PUBLIC MONEY Attempting control How it works Economic policy making has been compared to trying t ...
Interest rates How it works Lenders charge interest on the money or other assets that they loan. This is a charge levied to cove ...
120 121 GOVERNMENT FINANCE AND PUBLIC MONEY Attempting control ❯❯Nominal rate An advertised interest rate, which does not factor ...
Investment decreases due to costly loans and low confidence Export prices rise Exports fall Import prices fall Imports increase ...
122 123 Investment increases due to cheap loans and high confidence Export prices fall Exports increase Import prices rise Impor ...
Quantitative easing is a 21st-century strategy aimed at boosting the economy. It uses central bank’s powers to create new money ...
124 125 COMPANY COMPANY COMPANY GOVERNMENT FINANCE AND PUBLIC MONEY Attempting control Increased reserves reduce interest rates ...
The level of taxation Pigouvian taxes Standard economic theory says that if consuming a good or service causes harm, a tax shoul ...
126 127 GOVERNMENT FINANCE AND PUBLIC MONEY Attempting control 24% estimated percentage of economic activity in Greece that went ...
SPENDING VS CUTS Government spending can directly support the economy, such as expenditure on transportation and communications. ...
128 129 GOVERNMENT FINANCE AND PUBLIC MONEY Attempting control Social security 24% Interest payments 6% Medical programs 25% Tra ...
$ How it works As well as providing services like education and healthcare, governments also usually take responsibility for pro ...
130 131 GOVERNMENT FINANCE AND PUBLIC MONEY Attempting control individuals on things such as CAPITAL SPENDING AND BORROWING mach ...
Cost-push inflation Several factors can cause costs to rise. An increase in the price of a raw material, for instance, can have ...
132 133 GOVERNMENT FINANCE AND PUBLIC MONEY Attempting control Higher wages The employees demand better pay, as it appears that ...
INFLATION Demand-pull inflation In an expanding economy, a phone company experiences a sudden increase in demand for their produ ...
134 135 $ GOVERNMENT FINANCE AND PUBLIC MONEY Attempting control $ $ $ $ $ $ Prices increase With an increased money supply and ...
THE THREE PARTS OF A BOP ACCOUNT How it works A country’s balance of payments account provides a record of all of its internatio ...
136 137 IM PO RT GOVERNMENT FINANCE AND PUBLIC MONEY Attempting control REST OF THE WORLD This account monitors international po ...
How it works A country’s economic conditions change from day to day, which is why exchange rates also fluctuate continuously. Th ...
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