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While the implementation of monetary policy directly targets interest rates, there are four identifiable transmission channels. Required: a) Identify the four transmission channels. (2 marks)

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While the implementation of monetary policy directly targets interest rates, there are four identifiable transmission channels. Required: a) Identify the four transmission channels. (2 marks) b) Briefly explain the impact of an expansionary monetary policy on economic activity through each of these four channels. (8 marks)

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