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1. What is a monetary policy? Who controls the monetary policy? What are the tools? How do the tools change money supply? 2. What is

1. What is a monetary policy? Who controls the monetary policy? What are the tools? How do the tools change money

supply?

2. What is a fiscal policy? Describe its tools.

3. Describe the role and effect of an expansionary fiscal policy and an expansionary monetary policy using IS-LM and AD-AS models.

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