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QUESTION Two instruments that are used to influence the performance of the economy in the short run are monetary and fiscal policies. Monetary policy is

QUESTION

Two instruments that are used to influence the performance of the economy in the short run are monetary and fiscal policies. Monetary policy is typically implemented by a central bank, while fiscal policy decisions are set by the national government.

a) Explain how Fiscal and Monetary policies impact the economy. (15 marks)

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