Welcome to The Oakridge School's Economics Blog. The goal of this class is for students to have the opportunity to learn economics through a real world setting discussing current events with each other and people throughout the country.
Thursday, February 17, 2011
Home Buyer Tax Credits
Alison discusses the repayment of the 2008 home buyer tax credits through the money supply and circular flow.
When the government gave out these loans, it was 'creating' money and injecting it into the economy. This increased the money supply and expanded the circular flow.