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These answers have to be a short paper They must include references if used in the paper to prevent plagiarism. The book I use is Economics- Stephen L. Slavin 10e McGraw-Hill Irwin. Discuss how...

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These answers have to be a short paper
They must include references if used in the paper to prevent plagiarism.
The book I use is Economics- Stephen L. Slavin 10e McGraw-Hill Irwin.
Discuss how monetary policy works to help achieve economic goals.
Discuss how national economies interact with each other to achieve their individual economic goals. (This is a question about foreign trade
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These answers have to be a short paper They must include references if used in the paper to prevent plagiarism. The book I use is Economics- Stephen L. Slavin 10e McGraw-Hill Irwin. Discuss how monetary policy works to help achieve economic goals. Discuss how national economies interact with each other to achieve their individual economic goals. (This is a question about foreign trade

Answered Same Day Dec 22, 2021

Solution

Robert answered on Dec 22 2021
128 Votes
Monetary policy is a process, through which monetary authority of a country
changes the base rate of interest to control aggregate demand, supply of money and
general price level. Monetary policy is aimed at making impact on the demand
side. Adoption of appropriate monetary policies work by encourages or
discourages aggregate demand. Interest rate is one of the determinants of aggregate
demand. Changes in the short term interest rates influence economic behaviour of
households and business. During the period of recession, adoption of expansionary
monetary policy will increase the money supply which will reduce interest rates.
Reduction in interest rate encourage spending by house hold and...
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