c Monetary Policy and Aggregate Demand What is monetary policy Goals Tools

C monetary policy and aggregate demand what is

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34-1c Monetary Policy and Aggregate Demand What is monetary policy? Goals? Tools? . .
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14 The Effects of Reducing the Money Supply Y P M Interest rate AD 1 MS 1 MD P 1 Y 1 r 1 MS 2 r 2 The Fed can raise r by reducing the money supply. An increase in r reduces the quantity of g&s demanded.
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