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Added on 2019-09-16
This report is on "analysis of monetary and fiscal policy". The aim of this report is to determine the short-run effects on the various aspects of the economy when the confidence of the consumer falls, the effects of the policy mix on the interest rate, consumption, investment, the real exchange rate, the budget, and trade balances and to determine the impact of the policies in the European countries that are affected by the liquidity trap. Short-run effects of a fall in consumer confidence on the interest rate, consumption, investment, the real exchange rate, and net exports due to the consumer confidence has declined in the economy, and as a result of that, the total demand has also decreased.