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There are many affects on the NZ economy because of the Global Financial Crisis. A few are: * Unemployment! * Govt. employs an expansionary fiscal policy. Lowers direct tax rates in an effort to increase demand and spending in the economy. * RBNZ adjust monetary policy by lowering interest rates, making saving less attractive and increasing demand and spending. * Demand for exports falls. Creating a deficit in net exports, i.e. buying more moneys worth than we sell. * Investment in the country falls due to loss of confidence. * Recession depression. Mental health and perhaps Physical health suffers.

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16y ago

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