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Monetary Policy Tools
central banks can manipulate the money supply in one of three ways:
open market operations;
its official policy rate and associated actions in the repo market; and
manipulation of official reserve requirements.
The Objectives of Monetary Policy:associated goal of controlling inflation.
The Relationship Between Fiscal and Monetary Policy:Policyassumption is made that wages and prices are rigid
The Advantages and Disadvantages of Using the Different Tools of Fiscal Policy:Different Tools of Fiscal Policy:DirectCapitalpowerful as the direct effects.
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