Episode 5 - Money, Interest Rate and Income: Policy Analysis
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Description
Episode 5 discusses the relationship between the goods market and the money market in which they operate interdependently. Any events in both markets will affect each other. Students will be exposed to these two important links between the goods and money markets. The effects of an expansionary and a contractionary fiscal policy on the economy will be discussed. The effects of such policies on the economy will also be discussed. The combination of fiscal and monetary policies aimed at achieving certain objectives will be explained too.