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What are the important tools to consider Monetary Policy?
Important tools to consider Monetary Policy:
a. What the money demand curve is
b. Why the liquidity preference model found the interest rate into the short run
c. How the Federal Reserve can shift interest rates
d. How monetary policy influences aggregate output into the short run
e. A deeper understanding of the adjustment procedure behind the savings–investment spending identity
f. Why economists believe within monetary neutrality which monetary policy influences only the price level, not aggregate output, within the long run
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