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fiscal and monetary policy
Essay specific features
Written by:
Faith N
Date added:
July 22, 2015
Level:
University
Grade:
B
No of pages / words:
5 / 1245
Was viewed:
9598 times
Rating of current essay:
Essay content:
The Reserve Bank controls money supply by affecting the level of reserve assets held by financial institutions. This is done by trading assets in government securities. As the effect of change in money supply on aggregate demand is indirect, it is argued that monetary policy is less effective than fiscal policy in stabilizing the economy...
displayed 300 characters
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As the effect of change in money supply on aggregate demand is indirect, it is argued that monetary policy is less effective than fiscal policy in stabilizing the economy. Fiscal policy is also aimed at influencing a nation’s aggregate demand and includes measures undertaken by the government in relation to raising revenue through taxation...
displayed 300 characters
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