What is meant by the term quot Credit Impulse quot ........

Economic Affairs Financial Markets

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What is meant by the term "Credit Impulse"?

It measures the change in flow of bank credit relative to the economic activity

It refers to the correlation between household savings and investment

It refers to the effect of rising domestic demand on credit growth

None of the above

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Explanation:

1st option is correct.

The concept of credit impulse was first introduced by Deutsche Bank economist Michael Biggs, in November 2008. The concept emphasizes that spending is a flow and as such it should be compared with net new lending, a flow, rather than credit outstanding, which is a stock. Credit impulse is measured as the change in new credit issued as a percentage of the gross domestic product (GDP).