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Define monetary policy

Define monetary policy? What monetary measure can be accepted to control the condition of excess demand?

It is the policy accepted by central bank exercising control over money rate of interest and credit situation. In the condition of excess demand, the following monetary measures are accepted.

A) Increasing the rate of interest.
B) Reducing accessibility of credit

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  • Q : Define monetary policy Define monetary

    Define monetary policy? What monetary measure can be accepted to control the condition of excess demand? It is the policy accepted by central bank exercising control over money rate of interest and credit situatio