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Explain 4 Monetary Transmission Mechanisms (Channels of money) and explain how reductions in money impact the...

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Finance

Explain 4 Monetary Transmission Mechanisms (Channels of money)and explain how reductions in money impact the components ofaggregate demand, AD and output

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Monetary mechanisms that causes reduction in money supply in economy are as follows 1 Increase in bank rate An increase in bank rate raises the market rate of interest and as a result credit becomes costly Accordingly availability of credit    See Answer
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Explain 4 Monetary Transmission Mechanisms (Channels of money)and explain how reductions in money impact the components ofaggregate demand, AD and output

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