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Enacting legislation or statutes that make it easy to invest 

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Enacting legislation or statutes that make it easy to invest 

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Admisnistering the exchange rate at a reasonable lev

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Administering the exchange rate at reasonable level

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Pump money into economy

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Deregulation

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During a downturn,
Government could raise interest rates
Cut back taxes to boost aggregate demand
Pump money into the economy by raising public spending

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Governments can intervene in terms of interest rates

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Manipulating interest rate

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Control the interest rate - not high as sky rocket or not low

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Increase jobs and drive economic growth

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Incr

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Economy by raising public spending and cut back taxes to boost aggregate demand and hance economic growth

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Government expenditure on different infractures

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1- increase demand by
- cutting taxes
_ cutting interest rate
2-  increase supply by
- free trade aggrement
- improved education+ training

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Manipulation of interest rates, public spending and taxation.

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1) Create jobs.
2) provide subsidies
3) control bank lending rates.
4) incentives to companies
5) change policies to increase foreign investment or ease of doing business.

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Fluctuating the interest rate

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Spending occurs on existing assets but not on productive new business that boost economy.