How open market operations affect the money supply

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1. Explain how open market operations affect the money supply, interest rates, investment and GDP.

2. If output is above/below full employment, explain how and why an increase/decrease in wages and prices will bring the economy back to full employment.

3. “Fiscal and monetary policy are like matches: powerful tools, but not to be given to children or arsonists.” Explain

Reference no: EM131391875

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