The inflation rate target

The rate at which banks lend to each other overnight

The government's borrowing rate

The rate banks charge consumers for loans

Large-scale bond purchases by the Central bank 

Increasing tax rates

Raising interest rates 

Reducing government spending 

Government spending equals tax revenue

The economy is in recession

Government spending exceeds tax revenue

Tax revenue exceeds government spending

To pay for government services like roads, schools and police

To give money to firms 

to increase inflation

To reduce the cost of goods 

Government spending on road construction

A new car purchased by a consumer

The sale of a used house

Business investment in new equipment

How fast the policy works

The political party in power

Whether the goal is to stimulate or cool the economy

Who controls the policy

Reducing unemployment 

Fighting inflation

Balancing the Budget 

Increasing government revenue