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Chapter 5 1. Does the monetary policy affect macroeconomic condition? Explain how. 2. Discuss the uses of a stimulative monetary policy and a restrictive-monetary policy?

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Chapter 5 1. Does the monetary policy affect macroeconomic condition? Explain how. 2. Discuss the uses of a stimulative monetary policy and a restrictive-monetary policy? 3. Discuss the reasons why financial market participants/investors spend much on monitoring money supply fluctuations. 4. What actions can the Fed make to increase inflation? 171. 1. 11 1

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