Demand Side Policies

Demand Side Policies

1. Monetary Policy

   • Impact of interest rates
     • Consumer durables
     • Housing market
     • Wealth effect
     • Saving
     • Investment
     • Exchange rate
   • Quantitative Easing
   • Role of the Bank of England
   • Impact on AD

2. Fiscal Policy

   • Direct & indirect tax
   • Impact on AD
   • Government borrowing

3. Strengths & weakness of demand side policy

   • Speed of adjustment
   • Conflicting policies
   • National debt
   • Rate of Interest
   • Quantitative Easing
   • Multiplier
   • Time lags
   • Fine tuning