To support economic growth, the Indonesian government is committed to making the Islamic economy a source of national economic growth, one of which is through Islamic banking. In general, the form of a sharia bank business consists of a Commercial Bank and a Sharia Rural Bank, with a number of main differences. Banks are basically entities that collect funds from the public in the form of financing or in other words carry out the function of financial intermediation. There are a number of differences between Islamic Commercial Banks and BPRS. Explain what you know the differences in the bank!
IS-LM-PC Analysis
The IS (Investment Saving), LM (Liquidity Preference- Money Supply), and PC (Philips Curve) is the model that looks at the dynamics of output and inflation. It takes into account the central bank policy decision to adjust the inflation and real interest rate in the economy. It enables the economist to weather to priorities between employment and inflation rate analyzing the model. It is a practice-driven approach adopted by economists worldwide.
IS-LM Analysis
The term IS stands for Investment, Savings, and LM stands for Liquidity Preference, Money Supply. Therefore, the term IS-LM model is known as Investment Savings – Liquidity preference money Supply. This model was introduced by a Keynesian macroeconomic theory which shows the relationship between the economic goods market and loanable funds market or money market. In other words, it shows how the market for real goods interacts with the financial markets to strike a balance between the interest rate and total output in the macroeconomy. This particular model is designed in the form of a graphical representation of the Keynesian economic theory principle. The output and money are the two important factors in an economy.
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