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  • Business Sector Household Sector: Foreign Sector Government Sector Capital Market

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    kayla watanabe
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    The document outlines key components of an economy including the household sector, business sector, factor market, investment, government expenditures, and foreign sector. It also discusses monetary policies used to influence savings, investment, and economic growth through tools like interest rates, monetary supply measures, and reserve requirements. Government ensures resource allocation and stabilization across these sectors.

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    econ

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    Econ

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    The document outlines key components of an economy including the household sector, business sector, factor market, investment, government expenditures, and foreign sector. It also discusses monetary policies used to influence savings, investment, and economic growth through tools like interest rates, monetary supply measures, and reserve requirements. Government ensures resource allocation and stabilization across these sectors.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    11 views1 page

    Business Sector Household Sector: Foreign Sector Government Sector Capital Market

    Uploaded by

    kayla watanabe
    The document outlines key components of an economy including the household sector, business sector, factor market, investment, government expenditures, and foreign sector. It also discusses monetary policies used to influence savings, investment, and economic growth through tools like interest rates, monetary supply measures, and reserve requirements. Government ensures resource allocation and stabilization across these sectors.

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    © All Rights Reserved
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    of 1

    Expenses

    PRODUCT MARKET
    Goods &
    Services Revenue

    HOUSEHOLD BUSINESS EXPORT INJECTIONS:


    SECTOR SECTOR - Investment
    FACTOR MARKET
    - Export
    Land, Labor, Capital, Expenditures
    - Govt Expenditures
    Factor INVESTMENT GOVERNMENT
    Income EXPENDITURES

    CAPITAL GOVERNMENT FOREIGN


    MARKET SECTOR SECTOR
    Y=C Governed by Financial
    SAVINGS TO ENSURE
    Y = C + SAVINGS Ensures:
    System: ECONOMIC GROWTH
    S = Investment
    1.) BSP – Through - Resource Allocation
    Monetary Board - Resource
    2.) BANKING INS. Distribution
    MONETARY POLICIES 3.) NON-BANKING INS.
    - Stabilization
    - Interest Rates - ↑Savings ↑Interest ↓Investment SAVINGS:
    IMPORT
    PDY = Income - Tax - Savings
    MONETARY SUPPLY – M1 = Notes & coins - Taxes
    M2 = M1 + Broad money - Imports
    M3 = M2 + Broad liabilities
    M4 = M3 + Foreign currency
    > Reserve Requirement – Portion of bank inflows that should be retained
    FOREIGN MARKET
    > Rediscounting
    > Open Market Operations – Government securities are bought and sold
    Balance of Payment (Inflow = Outflow)
    > Moral (succession) – Encourage banking system in order to support/achieve - Current Account: export/import
    goals - Financial Account: money market, etc.
    > Direct Control
    - Capital Account: assets

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