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Monetary And Fiscal Policy
Beginning of paper
The Monetary and Fiscal Policies, although controlled by two
different organizations, are the ways that our economy is kept under
control. Both policies have their strengths and weaknesses, some
situations favoring use of both policies, but most of the time, only
one is necessary. .... Middle of paper
.... new reserve requirement.
The tool known as open market operations influences money and
credit operations by buying and selling of government securities on
the open market. This is used to control overall money supply. If
the Fed believes there is not enough money in circulation, then
they will buy the securities from member banks. If the Fed believes
there is too much money in the economy, they will sell the
securitie ....
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Number of words: 925
Number of pages: 4 (approx. 250 words per double-spaced page)
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