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Identify what is monetary aggregate

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If the government decides that aggregate demand is excessive and I causing inflation, what fiscal policy tools can be used to reduce aggregate demand? What fiscal policy tools can be used to increase aggregate demand?

What are the three main monetary aggregates that make up the money supply? Define each and identify what is each monetary aggregate. Which monetary aggregate is most often target by monetary authorities to control money supply and why?

Reference no: EM133062847

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