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10 cards from this deck
Gov decisions on spending, taxation & borrowing affecting AD
Use of money supply & interest rates to influence AD
Increasing gov spending or reducing taxes
When gov spending (G) exceeds tax revenue (T)
Taxes levied on income (e.g. personal income tax)
Taxes on expenditure (e.g. VAT, excise duties)
The UK's central bank
Interest rate set by MPC to influence inflation
BoE purchases assets from banks to increase liquidity
2% per annum (CPI), within 1pp either way
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