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Monetary And Fiscal Policy
Part 1 of Paper
.... the ways that our economy is kept under
control. Both policies have their strengths and weaknesses, some
situations favoring use of both policies, but most of the time, only
one is necessary.
The monetary policy is the act of regulating the money supply .... Part 2 of Paper
....ey and
credit operations by buying and selling of government securities on
the open market. This is used to control overall money supply. If
the Fed believes there is not enough money in circulation, then
they will buy the securities from member banks. If the Fed believes
there is too much money in the economy, they will sell the
securities back to the banks. Because it is easier to make gradual
changes in the supply of money, open market operations are use
more regularly than monet.... |
| Number of words: 925 - Approximate pages: 4 |
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